Emirates Islamic + FAB line up ESG loans

!_Anchhor03_! Two local lenders have shelled out sustainability-linked loans to local players in real estate and retail.

#1- ENBD’s Islamic arm lends AED 250 mn to BFL: Emirates Islamic, the Islamic banking arm of Emirates NBD, is lending Dubai-based retail player Brands for Less (BFL) an AED 250 mn financing facility, according to a press release. The facility is sustainability-linked, incorporating environmental, social, and governance aspects, and includes extra revolving financing lines.

Next up? The facility will go towards BFL’s everyday operations and trading activity. BFL had been expanding in Southeast Asia, with stores in Singapore and Malaysia opening last year.

#2- Sharjah-based developer Arada secured a five-year USD 100 mn facility from First Abu Dhabi Bank (FAB) to fund project development, according to a press release. Italy’s state-owned export credit agency Sace is the guarantor for the financing. Sace has been involved with similar agreements with Emirati players before.

Why now? Arada has big plans in the pipeline. It’s committing AED 2 bn to expand an Abu Dhabi-based healthcare provider it took an 80% stake in just last week. It’s also planning new launches in the UAE and Australia, an entry into KSA, and is scaling its UK presence after taking an 80% stake in a USD 3.3 bn project in London last year.

ICYMI- Arada was among other Dubai developers that saw their debt get pricier at the peak of the conflict, with spreads on one of its issuances more than doubling to 707 bps.

The ESG angle: FAB’s facility to Arada comes as the developer pushes ahead with “green investment,” as it looks to integrate more LEED and WELL certifications into its future builds.