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 developer Aldar Properties to support the decarbonization of the latter’s investments, according to a statement by the lender. 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.

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.

Where’s the money going? Aldar will channel the financing package toward expanding green building developments, as well as increasing renewable energy integration across its properties. The proceeds will also fund projects focussing on energy efficiency, sustainable water management, and pollution control across Aldar’s properties.

Both sides have been upping their climate 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. Abu Dhabi’s 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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