Aldar Properties (Aldar) has secured a sustainability-linked financing agreement worth AED1 billion (US$272.23 million) with Abu Dhabi Islamic Bank (ADIB) to fund its sustainable projects.
The financing comes after the issuance of Aldar’s US$500 million debut green Sukuk in May last year.
Notably, while Aldar signed the sustainability-linked financing facility in late December 2023, its financial statements for the period ended the 30th September 2023 revealed that it has yet to utilize its AED500 million (US$136.11 million) sustainability target-linked term loan signed in June 2023.
The new sustainability-linked financing brings Aldar’s total ESG financing to AED4.8 billion (US$1.31 billion), with the facilities to be channeled toward sustainable projects under its Green Finance Framework.
The framework covers green building projects, property upgrades to enhance energy efficiency, sustainable water management, pollution control measures and renewable energy sources projects.
Aldar has previously worked with ADIB as one of the bookrunners for its debut green Sukuk. According to Faisal Falaknaz, the group chief financial and sustainability officer at Aldar, it is looking to continue to partner with the Islamic bank on sustainable financing efforts moving forward.
“We are excited to support Aldar in its effort to decarbonize the real estate industry and extend our long-term relationship to support the company’s dedication to contributing to a low-carbon economy,” Mohammed Al Fahim, the acting global head of wholesale banking at ADIB, commented.
According to Mohammed, the closure of the sustainable finance facility also demonstrates how the broader financial sector can play an active role in expediting the UAE’s green transition.
Commenting on its net-zero plan which its various sustainability financing will contribute to, Faisal previously told ISFI that Aldar has set science-aligned 2030 interim targets, which will see the property developer achieve net zero in its Scope 1 and Scope 2 greenhouse gas (GHG) emissions. It will result in a 45% reduction in the intensity of its Scope 3 GHG emissions compared with its 2021 baseline.