ADCB prices $650m green bond

Arabian Post Staff

Abu Dhabi Commercial Bank has announced that it has successfully priced a USD 650 million green bond, the proceeds of which will be used to finance eligible green assets as outlined in ADCB’s Green Bond Framework.

The green bond is in line with ADCB’s climate strategy and reflects the Bank’s commitment to supporting customers in the transition to a net zero economy. Proceeds will be used to finance eligible green projects in accordance with ADCB’s Green Bond Framework

This follows the success of ADCB’s inaugural USD 500 million green bond issuance in September 2022. Ahead of the UAE’s hosting of COP28, this issuance underscores ADCB’s commitment to supporting the UAE’s Net Zero by 2050 Strategic Initiative

Following an extensive global investor roadshow, the green bond priced at a spread of 125 bps above US treasuries with a 5.50% coupon rate. It was 2.9 times oversubscribed, attracting interest from a range of local, regional and international investors that placed total orders of over USD 1.9 billion. This strong demand demonstrates the market’s trust in ADCB’s creditworthiness and the appeal of the Bank’s sustainability initiatives.

This marks ADCB’s second green bond issuance, building on the success of its inaugural USD 500 million green bond in September 2022. ADCB’s return to the green bond market reinforces its commitment to both responsible financing and the advancement of sustainable initiatives that support the UAE’s Net Zero by 2050 Strategic Initiative.

The attractive pricing for ADCB’s green bond is underpinned by the Bank’s robust credit ratings of A/Stable/A-1 from S&P and A+/Stable/F1 from Fitch, as well as strong ESG ratings with an ‘AA’ rating from MSCI and a ‘Medium risk’ classification by Sustainalytics.

Also published on Medium.