FAB becomes the first bank in the Middle East to issue green ‘Repo’ financing
- Transaction with Deutsche Bank reflects sustainability shift in the banking sector as the industry ramps up ESG financing solutions
Abu Dhabi, 15 November 2021: First Abu Dhabi Bank (FAB), the UAE's largest bank and one of the world's largest and safest financial institutions, has executed the first green repurchasing transaction in the Middle East. The transaction was structured -with Deutsche Bank.
A repurchase agreement (Repo) is collateralised borrowing undertaken by a bank as part of interbank financing. Under this agreement, FAB receives EM Eurobonds collateral from Deutsche Bank and provides US dollar financing in exchange. Deutsche Bank will deploy the funds into green financing activity as outlined in its Green Financing Framework. Some examples of this are:
- Financing for the development of renewable energy
- Financing for the development of renewable energy technology
- Financing the improvement of energy efficiency and conservation
Speaking about the transaction, Martin Tricaud, Group Head of Investment Banking at FAB said: “We are proud to celebrate yet another first for FAB within the green financing space, with the execution of the Middle East’s first green Repo transaction. There is a rapidly growing demand for high-quality green financing solutions, both globally and regionally, as businesses and governments commit to net-zero targets on greenhouse gas emissions, and FAB aims to set an example for sustainability-related financing in our region. Seen against the backdrop of the COP26 climate summit, this transaction shows the financial sector working collaboratively to deliver successful and impactful financial solutions.”
Esra Turk, Head of Institutional Client Group CEEMEA and Chairman of the Investment Bank for MEA at Deutsche Bank said: “We are delighted to have collaborated with First Abu Dhabi Bank, a long-standing partner, on this innovative green Repo transaction. Deutsche Bank has placed sustainability at the core of its business and we are committed to supporting our clients transition to a net-zero carbon economy. We look forward to delivering further sustainable strategies which contribute to environmental and social objectives, while meeting our clients’ financing and investment needs.”
The Repo transaction follows a series of green financing firsts by FAB, with the bank acting as a pace-setter for sustainability in the GCC and broader Middle East financial sector. The bank holds the record for being first in the MENA region to issue a green bond. It was also the first bank in the GCC to join the Net-Zero Banking Alliance, committing to achieve net-zero emissions on both its operations and investments by 2050.