UAE’s ADIB and Aldar Properties close AED 1 bn green loan: Abu Dhabi Islamic Bank (ADIB) has extended an AED 1 bn (c. USD 272.2 mn) green bilateral loan to UAE-based real estate developer Aldar Properties to support the decarbonization of the latter’s investments, according to a statement. The credit line — on which ADIB acted as the sole facility provider — brings Aldar’s cumulative ESG-aligned facilities to AED 4.8 bn. The real estate developer is aiming to reach net zero by 2050.

Where’s the money going? Aldar will channel the financing package toward expanding green building developments, renewable energy sources, and property upgrades to increase energy efficiency. The funds will also go towards sustainable water management and pollution control across Aldar’s properties.

SOUND SMART-Bilateral loans are forms of credit arranged between a borrower and a single lender in a bid to facilitate working capital for developers, and are usually associated with lower complexity and administration challenges for banks.

Both sides have been upping their green finance game: Earlier this month, ADIB listed its first USD-denominated green sukuk, raising USD 500 mn in an issuance that was 5.2x oversubscribed. The sukuk issuance was part of the lender’s USD 5 bn Trust Certificate Issuance Programme. Meanwhile, Aldar secured AED 1 bn in ESG-linked loans from the Abu Dhabi Commercial Bank during COP28 to support its corporate sustainability targets. Aldar Investment Properties — a unit of Aldar Properties — raised USD 500 mn through its debut 10-year inaugural green sukuk back in May.

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