Emirates NBD's Groundbreaking $500M Green Bond Debuts

In a significant development for Dubai's financial markets, Nasdaq Dubai has welcomed the listing of a pioneering $500 million Sustainability-Linked Loan Financing Bond (SLLB) by Emirates NBD Bank PJSC. This bond marks the first issuance under the new International Capital Market Association (ICMA) and Loan Market Association (LMA) framework, setting a new benchmark in sustainable finance.

Rated A2/A+ by Moody’s and Fitch, this five-year bond carries a fixed coupon rate of 5.141% and is set to mature in 2029. It is part of Emirates NBD's ambitious $20 billion Euro Medium Term Note (EMTN) Programme, underscoring the bank's commitment to sustainability and innovation within the financial markets.

The dual-listing of this bond on Nasdaq Dubai and Euronext Dublin reflects the growing interest from both regional and international investors, further cementing Dubai's reputation as a leading global hub for sustainable and innovative debt capital markets. With this issuance, Emirates NBD's total value of bonds listed on Nasdaq Dubai has reached $5.77 billion, spanning nine listings.

Nasdaq Dubai continues to enhance its status as the premier platform for regional and global fixed-income and ESG-related listings. The exchange boasts an outstanding total value of $139 billion in listed fixed-income securities, with $30.4 billion dedicated to ESG-focused issuances. This reinforces Dubai’s position as a gateway for investors seeking diverse investment opportunities.

During the market opening ceremony, Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, emphasized the significance of this listing, stating, 'We are proud to list the world’s first Sustainability-Linked Loan Financing Bond issued under the new ICMA/LMA framework on Nasdaq Dubai. This not only marks an important milestone in our sustainability journey as a bank but also serves as a testament to our commitment to supporting the evolving needs of capital markets, investors, and our customers for ESG-compliant financial instruments.'

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, added, 'We welcome Emirates NBD’s Sustainability-Linked Loan Financing Bond to Nasdaq Dubai. The exchange continues to play a key role in providing issuers with access to capital to support their sustainability objectives.'

For investors, the introduction of such innovative financial instruments signals a growing trend towards sustainable investment opportunities. While the bond's fixed coupon rate offers a stable return, its alignment with ESG principles may attract a broader range of investors seeking to balance financial returns with environmental and social impact.

Given the current market conditions and the strategic importance of sustainable finance, investors may consider holding their positions in Emirates NBD's new issuance to benefit from both financial returns and potential ESG-related growth.