Emirates NBD has announced the successful completion of its inaugural dual-tranche sustainable bond issuance, totaling USD 1 billion, under its Euro Medium Term Note (EMTN) program. This issuance features a blue tranche amounting to USD 300 million with a maturity of three years and a green tranche of USD 700 million set for five years. This marks the largest blue bond issuance in both the UAE and the Gulf Cooperation Council region, as well as the largest dual-tranche blue-green bond issued by any financial institution globally.
Through this bond issuance, Emirates NBD reaffirms its commitment to the United Nations Sustainable Development Goals, allocating the proceeds toward supporting Goal 14: Life Below Water, and Goal 13: Climate Action. The structure of the dual-tranche bonds showcases the bank’s innovative approach to sustainable financing, broadening its investor base while directing funds toward marine conservation, sustainable water projects, and green initiatives, in line with the bank’s updated sustainable finance framework effective November 2025.
The offering received a strong response from global investors who prioritize environmental, social, and governance (ESG) criteria, reflecting confidence in Emirates NBD’s creditworthiness and its leading market position, along with its strong commitment to sustainability. Notably, the deal included participation from T. Rowe Price, a prominent global asset management firm recognized for leading blue investments, which subscribed to the blue tranche as part of its commitment to sustainable financing in oceans and water. This issuance adheres to global best practices under the Green Bond Principles set forth by the International Capital Market Association (ICMA) and aligns with emerging guidelines for blue bonds.
Environmental Priorities
Ahmed Qassem, Head of Business Banking at Emirates NBD, stated, “This dual-tranche blue and green bond issuance highlights the depth and diversity of sustainable debt markets within the Gulf Cooperation Council. We are continuing to mobilize capital to support and protect our region’s environmental priorities, including the preservation of marine ecosystems, enhancing water consumption efficiency, and accelerating the energy sector’s transition. The strong investor demand reflects growing confidence in our sustainable finance strategy, reinforcing our key role in advancing the UAE’s comprehensive sustainability agenda.”
Innovative Tools
Vijay Bains, Chief Sustainability Officer and Head of Environmental, Social, and Governance Governance at Emirates NBD, remarked, “This issuance establishes Emirates NBD as a pioneering institution in the blue bond market within the Gulf Cooperation Council region. We are dedicated to providing innovative tools for sustainable financing while expanding access for global investors focusing on sustainability and ESG issues in the UAE markets. By structuring this transaction under our EMTN program and clearly stating the use of proceeds while adhering to stringent governance standards in line with ICMA’s principles, we ensure the utmost transparency and impact of these bonds. We are extremely pleased with the demand quality for this USD 1 billion issuance and anticipate it will significantly contribute to enhancing blue financing in the region.”
Blue Economy
Matt Lawton, Head of Impact Investing at T. Rowe Price, stated, “We are excited to partner with Emirates NBD on this innovative blue bond transaction, which will help mobilize substantial capital to support the blue economy. We believe that this issuance will meet a crucial developmental priority while providing opportunities for attractive investment returns. We hope this transaction will support the blue bond market and serve as a model for future issuances.”
Emirates NBD Capital, Citibank, HSBC, Mizuho Bank, Standard Chartered Bank, and Société Générale acted as joint lead managers and underwriters for the deal, with Emirates NBD Capital and Citibank serving as joint sustainability structuring agents. Clifford Chance served as the legal advisor to the issuer, while Linklaters acted as counsel for the joint lead managers. The bonds were issued through a public offering under the EMTN program and will be listed on both Euronext Dublin and Nasdaq Dubai.