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First Abu Dhabi Bank A new initiative was announced on Tuesday to boost capital for sustainability-focused investments.
The bank said its “sustainability-linked current account” would help corporate clients integrate sustainability into their regular cash flows. The account can also be used for business needs, though the bank will ensure that funds are used for sustainable development projects, according to a press release.
A current account is a British term meaning an ordinary bank account used for financial transactions. It is similar to a checking account in the United States.
First Abu Dhabi Bank released a report last year Sustainable Finance Goals. They identified the following sectors as targets:
- Renewable Energy
- energy efficiency
- water resource management
- pollute
- transportation
- natural resource management
- Biodiversity Conservation
- eco-efficient products
Dubai-based real estate and hospitality conglomerate Landmark Group is the first company to open a sustainability account with the bank, according to a press release. The spokesman did not respond to Al-Monitor’s request for comment on other companies interested in the program.
Why it matters: Financial institutions in the Middle East are increasingly offering environmentally-focused services as part of the region’s energy transition. Egypt’s Financial Supervisory Authority approves green bonds Since 2018 release them.
Green bonds are debt instruments used to raise funds for environmentally focused projects.
In February, Qatar National Bank announced a partnership with HSBC in the UK Qatar National Bank to receive green bonds.
this Saudi Public Investment Fund issues green bonds First time in October.
First Abu Dhabi Bank is the largest bank in the United Arab Emirates.
learn more: First Abu Dhabi Bank is no stranger to green finance. The bank issued its first green bond in 2017. First Abu Dhabi Bank issues more green bonds in October.
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