Abu Dhabi Bank Introduces New Sustainability Programme
First Abu Dhabi Bank recently announced a new programme to raise capital for sustainable investments.
According to the bank, the "sustainability-linked current account" will assist corporate clients in incorporating sustainability developments into their regular cash flows. The account can also be used for business purposes, although the bank will ensure that the funds are used for sustainability projects.
A "current account" is a British term for a regular bank account that is used to handle money. In the United States, it is similar to a checking account.
The first business to open a sustainability account with the bank is Landmark Group, a real estate and hotel company based in Dubai.
As part of the region's energy transition, more and more financial institutions in the Middle East are offering services that focus on the environment.
Egypt’s Financial Supervisory Authority approved green bonds in 2018 and has since issued them.
Green bonds are debt securities intended to fund environmental projects.
In February, Qatar National Bank made a deal with the British bank HSBC that allows Qatar National Bank to buy green bonds.
In October, the Saudi Public Investment Fund issued its first green bonds.
First Abu Dhabi Bank is the biggest lender in the United Arab Emirates. The bank issued its sustainable finance goals last year.