The five-year bond was priced at 140 basis points over Treasuries. Image Credit: supplied/Gulf News Archives

Dubai: Commercial Bank of Dubai (CBD) successfully raised $500 million via its inaugural green bond, it said on Wednesday.

The five-year bond, with a coupon rate of 5.319 per cent, was priced at 140 basis points over Treasuries. The issuance generated substantial interest from investors following a well-received global road show.

The demand showcases the confidence placed by local, regional, and international investors in CBD’s strong and sustained financial performance and environmental, social, and governance (ESG) approach, further emphasising the growing importance of sustainable investment opportunities.

Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, stated: “This successful issuance of CBD’s inaugural green bond underscores our strategic dedication to long-term sustainability and our proactive approach in addressing environmental challenges. By supporting the UAE’s sustainability ambitions and contributing to a greener future, we are aligning ourselves with global environmental goals and driving sustainable finance to help foster a more resilient economy.”

The proceeds from the green bond issuance will be exclusively allocated to financing projects adhering to the criteria outlined in CBD’s sustainable finance framework. Eligible initiatives include renewable energy, green buildings, clean transportation and pollution prevention and control.