STOCK ADCB / Abu Dhabi Commercial Bank
The bond was 2.9 times oversubscribed. Image Credit: Supplied/Gulf News Archives

Abu Dhabi: Abu Dhabi Commercial Bank has successfully priced a $650 million green bond, the proceeds of which will be used to finance eligible green assets, it said on Wednesday.

This follows the success of ADCB’s inaugural $500 million green bond issuance in September 2022.

Following an extensive global investor roadshow, the green bond was priced at a spread of 125 bps above US treasuries with a 5.50 per cent coupon rate. It was 2.9 times oversubscribed, attracting interest from a range of local, regional and international investors that placed total orders of over $1.9 billion.

Ala’a Eraiqat, Group CEO, 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. As the UAE prepares to host COP28, ADCB stands ready to support customers on their path to success in a net zero economy.

“The positive response from investors to this issuance reflects the value they see in our approach to green finance. This achievement not only reinforces our commitment to driving positive change, but also demonstrates the market’s recognition of ADCB’s credit and ESG strength, as well as our ongoing efforts to contribute to a more sustainable future.”