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March 2, 2024

Emirates NBD facilitates Sidara’s 1st Sustainability-Linked Loan

Emirates NBD, a leading banking group in the Middle East, North Africa and Türkiye (MENAT) region, has partnered with Sidara, a global collaborative of specialist architecture, engineering and consulting brands, to arrange a $50 million Sustainability Linked Loan (SLL).

Aligning Sidara’s financial strategy with its sustainability objectives, this strategic move marks Sidara’s first SLL and positions the company as one of the first movers to enter the green finance market in the region.

The new loan structure ties financial incentives to Sidara’s sustainability performance, encouraging the company to adopt more responsible and more sustainable operational practices.

The proceeds of the loan will fund Sidara’s working capital requirements and will prominently include allocations dedicated to supporting Sidara’s transition towards net zero operations, in line with its global commitment to the World Green Building Council’s Net Zero Buildings Commitment as well as the UAE Pledge for Net Zero.

Priyanthini McNair added that, “This initiative marks a significant step in our journey to become the leading banking partner for sustainable development in the region. We will continue to serve our clients as a trusted transition partner, guiding them through their sustainability journeys, and play an active role in pushing for a sustainable and low carbon future.”

Nader Aboushadi, Group Chief Treasurer at Sidara, said that, “Advancing sustainability is at the core of Sidara’s mission, and we are glad to partner with Emirates NBD on this journey. Having released our first ESG-focused annual report, which sets a baseline or starting point, we have been able to agree on KPI’s with our lenders and kick-off this journey. We look forward to continuing the journey with our lenders and continue to set the standard and be at the forefront of the market.”

Balsam Nehme, Sidara’s Sustainability Sector Lead, commented that, “With the world and its systems under immense and growing pressure from human activity, it is essential for businesses like Sidara to lead the way in regenerative and responsible business practices that put people and planet first.”

Balsam Nehme added that, “As one of the signatories to the World Green Building Council Net Zero Carbon Commitment and the UAE’s Climate Responsible Companies Pledge, we are committing to use our first Sustainability-Linked Loan to drive forward sustainability initiatives that will lead to decarbonizing our own operations across the region and empower our teams to offer superior sustainability advisory to our clients, across sectors, in order to support the region’s ambitious Net Zero agenda.”