International law firm Clifford Chance has advised Emirates NBD Bank PJSC (“ENBD”), one of the largest banking groups in the GCC (by total assets), on the issuance of US$750 million inaugural ESG notes (“ESG Notes”) under its US$20,000,000,000 Euro Medium Term Note Programme. The ESG Notes were issued in accordance with Regulation S of the U.S. Securities Act of 1933 and are listed on Nasdaq Dubai and Euronext Dublin.
Following a global investor roadshow, the issuance was over two times oversubscribed, attracting a range of local, regional and international investors that placed total orders of over US$1.9 billion (excluding joint lead manager interest).
The ESG Notes proceeds will be deployed in accordance with ENBD’s newly adopted Sustainable Finance Framework (the “Framework“), which governs investment in sustainable projects such as green buildings, renewable energy, energy efficiency, clean transportation, pollution prevention and control, sustainable water and waste water management, access to essential services, affordable housing and employment generation and programmes designed to prevent and/or alleviate unemployment stemming from socio-economic crisis, including through the potential effect of small and medium-sized enterprise (SME) financing.
The Framework is based on principles set out by the International Capital Markets Association and the Loan Market Association (the “Principles“). The Framework sets out criteria for use of proceeds and is governed by ENBD’s Sustainable Finance Committee, which comprises representatives from ENBD’s Group Treasury, Group Sustainability, Risk, Legal, as well as subject matter experts from relevant business units. Furthermore, in accordance with industry best practice, ENBD has obtained a ‘Second Party Opinion’ from ISS Corporate Solutions to externally verify the sustainability quality of the Framework and its alignment with the Principles.
The Framework is intended to assist ENBD in supporting the achievement of the UAE’s ambitious Sustainability Development Goals (“SDGs“) as well as the UN SDGs and targets set forth by the Paris Climate Agreement.
Clifford Chance’s team comprised partner and Head of Middle East Capital Markets, Stuart Ure (Dubai), Alekhya Prakash (Counsel, Dubai) and Nader Koudsi (Senior Associate, Dubai).