London Stock Exchange has welcomed the listing of the first ever green bond from the Gulf region, issued by National Bank of Abu Dhabi (NBAD), one of the leading banks in the Middle East.
The 5-year-dated green bond raised $587m, paying a 3 per cent semi-annual coupon. NBAD will use the proceeds to invest in projects which contribute to the fight against climate change and to protect natural resources. Eligible projects are identified in NBAD’s Green Bond Framework, which was drafted in accordance with the Green Bond Principles, a global set of guidelines framing the issuance of green bonds.
Today’s milestone bond listing for NBAD and the Gulf region follows several high profile bond issuances by supranational institutions, municipals and private companies on London Stock Exchange over the past 12 months, cementing London Stock Exchange’s position as a leading global venue for debt and sustainable fundraising.
Together, with the active and fast-growing community of Middle Eastern issuers on its markets, London Stock Exchange is ideally suited to support Abu Dhabi’s and the wider region’s growth ambitions. 37 Middle East and North Africa (MENA) companies with a combined market capitalization of $66bn are listed in London. In 2017 so far, seven international sovereign bonds from the Mena region, raising a total amount of $14.4bn, have listed in London.
Darko Hajdukovic, Head of Fixed Income, Funds & Analytics, London Stock Exchange said:“London Stock Exchange is proud to be the partner of choice for National Bank of Abu Dhabi in its historic green bond listing, another world first for green finance. NBAD is spearheading the potential to unlock and promote green finance across the Middle East region.
“London Stock Exchange is a recognised world leader in green, sustainable and debt financing, supporting issuers from Abu Dhabi to China, Finland to India in accessing international investment capital." " There is an undeniable shift in momentum in green and sustainable financing across the world and we believe there is an opportunity for us to be the funding partner of choice for the wider Middle East region. London Stock Exchange is uniquely placed with its extensive product offering and expertise to support issuers and inventors in this green funding revolution.”
LSEG is home to a number of global first green bond issuances from Bank of China and Agricultural Bank of China, India’s Axis Bank, Development Bank of Japan and the IFC, a member of the World Bank Group. In 2016, 14 new green bonds in 5 different currencies raised over $5bn; in total 42 green bonds are listed on London Stock Exchange which have raised $11.2bn.
There are 35 ‘green companies’ which have raised $10bn combined in London including 14 renewable investment funds
