Nasdaq Dubai has marked a groundbreaking moment in the financial world by listing the first-ever Sustainability-Linked Loan Financing Bond (SLLB) under the new International Capital Market Association (ICMA) and Loan Market Association (LMA) framework. Issued by Emirates NBD Bank PJSC, this $500 million bond signals a significant step towards integrating sustainability into global financial markets.
Rated A2 by Moody’s and A+ by Fitch, the five-year bond carries a fixed coupon rate of 5.141% and will mature in 2029. It is part of Emirates NBD’s $20 billion Euro Medium Term Note (EMTN) Programme, emphasizing the bank’s dedication to innovative and sustainable financial practices.
What is a Sustainability-Linked Loan Financing Bond (SLLB)?
In simple terms, an SLLB is a bond designed to finance projects that align with specific environmental, social, and governance (ESG) goals. Unlike traditional bonds, which fund general corporate purposes, SLLBs are tied to achieving measurable sustainability targets. For instance, companies may commit to reducing their carbon emissions or increasing their use of renewable energy sources.
The new ICMA and LMA framework sets stringent guidelines to ensure transparency and accountability. This framework ensures that the funds raised through SLLBs are genuinely directed toward projects that promote sustainability. For Emirates NBD, the proceeds will finance or refinance its portfolio of Sustainability-Linked Loan (SLL) assets, furthering its commitment to ESG principles.
Dual Listing and Global Appeal
The bond has been dual-listed on Nasdaq Dubai and Euronext Dublin, attracting considerable interest from both regional and international investors. This highlights Dubai’s evolving role as a global hub for ESG-focused financial instruments. Emirates NBD’s total bond listings on Nasdaq Dubai now stand at $5.77 billion, reflecting the growing demand for sustainable investment opportunities.
Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, stated, “This milestone issuance underscores our shared mission to expand ESG financing solutions. Nasdaq Dubai continues to serve as a vital platform for issuers seeking capital to fund sustainable initiatives.”
Strengthening Dubai’s ESG Leadership
Nasdaq Dubai’s commitment to ESG-linked financial instruments is evident in its growing portfolio. Currently, $30.4 billion of its total $139 billion fixed-income listings are ESG-focused. The exchange is cementing its reputation as a gateway for diverse investment opportunities, particularly in sustainable finance.
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, celebrated the listing by ringing the market opening bell. He remarked, “This milestone reinforces our dedication to sustainability and innovation. By aligning our financial instruments with ESG principles, we are meeting the evolving needs of investors and customers alike.”
Future of Sustainability in Finance
The issuance of this bond is more than a financial achievement; it’s a testament to the growing importance of ESG in global markets. By adopting the ICMA and LMA framework, Emirates NBD and Nasdaq Dubai are setting a precedent for transparency and accountability in sustainable finance. As demand for ESG-compliant instruments grows, initiatives like these pave the way for a more sustainable and responsible financial ecosystem.