ADCB kicks off USD 650 mn in five-year green bonds

ADCB pulls the trigger on green bonds issuance: The Abu Dhabi Commercial Bank (ADCB) — the UAE’s third largest bank — launched USD 650 mn in five-year green bonds, Reuters reports, citing a bank document it has seen. ADCB has given a price guidance of 125 basis points over US Treasuries, down from an initial price guidance of 150 bps over the same benchmark earlier on Tuesday. This comes after the order book surpassed USD 1.9 bn, a document from one of the banks arranging the sale said. The green bonds are maturing on 12 January 2029, the document notes.

Where are the proceeds going? Proceeds from the debt sale will be directed to the finance or refinance of eligible green assets, according to the document.

Advisors: ADCB hired Barclays, Deutsche Bank, Emirates NBD Capital, JP Morgan, Mizuho itself as joint bookrunners to schedule the investor meetings. Barclays has also been hired as sole ESG coordinator.

Not its first: ADCB raised USD 500 mn with its inaugural green bonds last year after luring in over USD 1.8 bn in orders for the issuance.