Dubai Islamic Bank (DIB), UAE’s largest Islamic bank, announced its inaugural sustainability-linked finance facilities financing framework.
The framework, in line with the International Capital Market Association’s (ICMA) ‘Sustainability-Linked Loans Financing Bonds Guidelines (SLLBG), provides clear definitions for what qualifies as eligible Sustainability-Linked Finance Facilities (SLF).
It also explains what will enable DIB to issue instruments with proceeds allocated to finance and/or refinance such SLF Facilities, which contribute to climate change mitigation.
To ensure end-to-end credibility and impact in climate change mitigation, the framework includes predefined key performance indicators and sustainability performance targets aligned with ICMA’s SLLBG.
Dr. Adnan Chilwan, Group Chief Executive Officer at Dubai Islamic Bank, said the development of this new Framework is an important step in the bank’s ESG journey.
“The Framework underpins a key pillar in our sustainability strategy and will contribute to the bank’s commitment to achieving 15 per cent of our portfolio in sustainable finance by 2030,” he said.
Chilwan said the framework will also support existing and new customers within and outside the region who are embarking on transforming their current business model into a more sustainable and future-proof one, with clear commitments to environmental and climate-positive impacts over the journey.
DIB said an allocation and impact report will be published at least annually throughout the lifetime of the sustainability-linked finance instruments.
It said SLF facilities included in the report will be subject to a second party opinion (SPO) and the report will also receive limited assurance by an independent party.
DIB has obtained an SPO from ISS-Corporate (ISS) which assessed the framework is aligned with ICMA’s SLLBG. Standard Chartered Bank also supported the development of the framework as the sole service provider, DIB said.
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