First Abu Dhabi Bank To Launch New Sustainability Program

"A sustainably linked current account" will help corporate clients integrate sustainability developments into their regular cash flows, said the Bank, which added that "the account can also be used for business needs, though the bank will ensure that the funds are used for sustainability projects" mentioned in the press release.

 Last year, First Abu Dhabi Bank released a report on its sustainable finance goals, as stated in the report.

They identified some sectors as their targets, which include renewable energy, energy efficiency, water management, pollution, transportation, natural resource management, biodiversity conservation, and eco-efficient products.

 In the press release, it is further mentioned that Dubai-based real estate and hospitality conglomerate Landmark Group is the first company to open a sustainability account with the bank.

 "Speakers chose not to respond when Al-Monitors requested comment on other companies’ interest in the program," said the report.

 The report concludes with the significance of the project, which comprises financial institutions across the Middle East that are increasingly offering environment-focused services as part of the regional energy transition. Egypt’s Financial Supervisory Authority approved green bonds in 2018 and has since issued them.

 Green bonds are debt instruments that raise capital for environment-focused projects.

In February, the Qatar National Bank announced a partnership with the British bank HSBC whereby it would receive green bonds.

 The Saudi Public Investment Fund issued green bonds for the first time in October.

 A "current account" is a British term meaning a normal bank account for financial transactions. It is similar to a checking account in the United States.

By Sumita Pawar