Abu Dhabi – Decypha: The National Bank of Abu Dhabi (NBAD) has listed the first ever green bond from the Gulf Cooperation Council (GCC), the London Stock Exchange (LSE) announced.
The bond raised $587 million, is for the duration of five years, and will pay a 3% semi-annual coupon.
The bank is aiming to invest the proceeds into climate change and natural resource protection focused projects.
According to NBAD, projects chosen will be in line with its Green Bond Framework, which was drafted in accordance with a global set of guidelines framing the issuance of green bond.
“London Stock Exchange is proud to be the partner of choice for National Bank of Abu Dhabi in its historic green bond listing, another world-first for green finance. NBAD is spearheading the potential to unlock and promote green finance across the Middle East region,” said Darko Hajdukovic, Head of Fixed Income, Funds & Analytics, London Stock Exchange.
Green bonds are tax-exempt bonds issued by federally qualified organizations or by municipalities for the development of brownfield sites. These bonds are for qualified green building and sustainable design project bonds, as defined by Investopedia.
By Decypha Editorial Team
