Abu Dhabi – Mubasher: Abu Dhabi Commercial Bank (ADCB) has priced $650 million green bonds to support UAE’s transition to a net zero economy, according to a press release.

ADCB will use the proceeds to finance eligible green assets in accordance with the UAE lender’s Green Bond Framework.

The green bond is priced at a spread of 125 basis points (bps) above US treasuries with a 5.50% coupon rate. The offering was 2.9 times oversubscribed, attracting interest from a range of local, regional, and global investors who placed total orders of over $1.9 billion.

The issuance marks ADCB’s second green bond offering, following its inaugural $500 million green bond in September 2022.

Alaa Eraiqat, Group CEO of ADCB, said: “ADCB’s second green bond issuance is a significant development in the delivery of our climate strategy, which is aimed at financing solutions to tackle climate change in support of the UAE Net Zero by 2050 Strategic Initiative.”

“This achievement not only reinforces our commitment to driving positive change, but also demonstrates the market’s recognition of ADCB’s credit and [environmental, social, and corporate governance]ESG strength, as well as our ongoing efforts to contribute to a more sustainable future,” Eraiqat added.

In the first half (H1) of 2023, the ADX-listed bank recorded net profits amounting to AED 3.81 billion, higher year-on-year (YoY) than AED 3.05 billion.