UAE’s Landmark Group signs first sustainability-linked loan
Benefits from sustainable financing to be deployed towards sustainable initiatives
Dubai: UAE’s Landmark Group signed its first sustainability-linked loan as the company looks to transition towards sustainable finance for the majority of its operations.
Landmark Group also signed up for Standard Chartered’s ‘Sustainable Account proposition’, integrating sustainability into to its banking operations. Deposits in sustainable accounts are referenced against sustainable projects funded by Standard Chartered across its market footprint.
In a meeting between Landmark Group’s Chairwoman and CEO Renuka Jagtiani and Standard Chartered Bank Group CEO Bill Winters, the company made a commitment to convert all its treasury products with the bank to sustainable wherever possible. Landmark has committed that the benefits from any sustainable financing will be deployed towards further sustainable initiatives.
“Today’s announcement of our first sustainability-linked loan, and our pledge to move towards green finance products wherever possible, is the latest demonstration of our wider commitment to people and planet,” said Rajesh Garg, Group Chief Financial Officer at Landmark Group.
Rola Abu Manneh, CEO, Standard Chartered UAE, added: “We have been partnering with Landmark Group in the Middle East and Asia for almost 30 years, and moving towards sustainable financing is a natural extension of our long-standing relationship.”
Green finance potential
By developing the right structure and mechanisms for green finance, GCC governments have the potential to unlock $2 trillion in cumulative GDP contribution, more than one million jobs and foreign direct investment in sustainable industries, according to Strategy& Middle East, part of the PwC network.
“GCC countries have some of the highest solar exposures in the world. We can also identify clear opportunities in green hydrogen where production technologies are easily accessible, reducing barriers to entry,” said Aurelien Vincent, Partner with Strategy& Middle East.
“Our analysis has found that green investments in six key GCC industries could have a profound socioeconomic impact that has the potential to create over one million skilled jobs and turbocharge foreign direct investment in highly sustainable industries,” said Vincent.