ADCB Prices Inaugural Green Bond to Support Financing of Low-Carbon Initiatives for a net-zero Economy

Press release
Published September 9th, 2022 - 05:34 GMT
ADCB Prices Inaugural Green Bond to Support Financing of Low-Carbon Initiatives for a net-zero Economy
Abu Dhabi Commercial Bank
Abu Dhabi Commercial Bank (ADCB) has announced that it has successfully priced its inaugural green bond

Abu Dhabi Commercial Bank (ADCB) has announced that it has successfully priced its inaugural green bond, which will be issued on 14 September 2022, raising USD 500 mn to support the financing of low-carbon initiatives.

The 5-year bond, priced at a spread of 115 bps above treasuries with a 4.5% coupon rate, was 3.8 times oversubscribed after attracting a range of local, regional, and international investors that placed total orders of over USD 1.9 bn. The strong investor demand follows a global roadshow and reflects confidence in ADCB and its approach to managing ESG risks and opportunities.

The Bank has embedded ESG into its corporate strategy and has aligned its sustainability approach to the UAE’s ambitions for an inclusive, net-zero economy. Commitments include providing AED 35 billion in green finance by 2030, reaching net-zero in the Bank’s own operations and reducing financed emissions in line with UAE government net-zero ambitions.

ALA’A ERAIQAT Group Chief Executive Officer said:

“The successful pricing of the first ADCB Green Bond is a significant milestone in the Bank’s implementation of international best practice in ESG. ADCB recognises the important role major banks play in supporting the transition to an inclusive, net-zero economy, and we support the goals of the UAE’s 2050 Strategic Initiative.

The Bank has adopted a Green Bond Framework to provide a long-term platform to support further mobilisation of capital for green projects.

We look forward to collaborating with clients and other stakeholders to advance in our shared ambition for a net-zero future.”

The favourable pricing for ADCB’s green bond was supported by the Bank’s strong credit ratings of A/Stable/A-1 from S&P and A+/Stable/F1 from Fitch. MSCI has assigned an ‘AA’ rating for ESG, while the Bank is categorised as ‘Medium risk’ by Sustainalytics.

The proceeds of the bond issuance will further support financing of a low-carbon economy in line with criteria set out in the Framework. Initiatives eligible for green loans include projects or companies associated with renewable energy, green buildings, sustainable water and wastewater treatment, clean transportation, energy efficiency, pollution prevention and control.

The Framework, which aligns with the United Nations Sustainable Development Goals and based on the International Capital Markets Association (ICMA) Green Bond Principles, is governed by a cross-functional Green Bond Working Group reporting to an executive-level Sustainability Committee. Furthermore, in accordance with industry best practice, ADCB has obtained a ‘Second Party Opinion’ to externally verify the sustainability quality of the Framework and alignment with Green Bond Principles.

More information on ADCB’s ESG strategy, which is founded on the four pillars of climate, customers and communities, employees, and governance, can be found at

Background Information

Abu Dhabi Commercial Bank

ADCB was formed in 1985 and today after integration employs over 3,350 people from over 45 nationalities, serving approximately 590,000 retail customers and over 20,000 wholesale clients.  It is the third largest bank in the UAE and second largest in Abu Dhabi by assets, at AED 163.7 billion as at March 31st, 2010. 

ADCB is a full-service commercial bank which offers a wide range of products and services such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate, currency, derivative, Islamic products, project finance and property management services. 

ADCB is owned 64.8% by the Abu Dhabi Government through the Abu Dhabi Investment Council.  Its shares are traded on the Abu Dhabi Securities Market. 

ADCB has won the Silver class category of The Sheikh Khalifa Excellence Award (SKEA) for the finance sector in November, 2009.  In February 2010, ADCB won The World Finance Corporate Governance Award for “Best Corporate Governance in the UAE” and was recently named “Best Retail Bank in the UAE and GCC 2010” by The Asian Banker magazine in March 2010.

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