Abu Dhabi bank launches new sustainability program
First Abu Dhabi Bank announced a new initiative Tuesday to increase capital for sustainably-focused investments.
The bank said its “sustainability-linked current account” will help corporate clients integrate sustainability developments into their regular cash flows. The account can also be used for business needs, though the bank will ensure that the funds are used for sustainability projects, according to a press release.
A current account is a British term meaning a normal bank account for financial transactions. It is similar to a checking account in the United States.
First Abu Dhabi Bank released a report last year on its sustainable finance goals. They identified the following sectors as targets:
- renewable energy
- energy efficiency
- water management
- pollution
- transportation
- natural resource management
- biodiversity conservation
- eco-efficient products
The Dubai-based real estate and hospitality conglomerate Landmark Group is the first company to open a sustainability account with the bank, according to the press release. Spokespeople did not respond to Al-Monitor’s request for comment on other companies interested in the program.
Why it matters: Financial institutions across the Middle East are increasingly offering environment-focused services as part of the regional energy transition. Egypt’s Financial Supervisory Authority approved green bonds in 2018 and has since issued them.
Green bonds are debt instruments that raise capital for environment-focused projects.
In February, the Qatar National Bank announced a partnership with the British Bank HSBC whereby Qatar National Bank will receive green bonds.
The Saudi Public Investment Fund issued green bonds for the first time in October.
First Abu Dhabi Bank is the biggest lender in the United Arab Emirates.
Know more: First Abu Dhabi Bank is not new to green finance. The bank issued green bonds for the first time in 2017. First Abu Dhabi Bank issued more green bonds in October.