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Fri 17 Jan 2020 11:02 AM

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Abu Dhabi seeks status as regional 'green bond' hub

Abu Dhabi Department of Energy, ADGM and ADX has announced a new Green Bond Accelerator initiative

Abu Dhabi seeks status as regional 'green bond' hub

The initiative has been launched with the objective of establishing Abu Dhabi as a regional hub for the issuance of green bonds and green sukuk.

The Abu Dhabi Department of Energy (DoE) has announced a new Green Bond Accelerator initiative.

Announced at the Abu Dhabi Sustainable Finance Forum, part of Abu Dhabi Sustainability Week 2020, the programme is a joint initiative between DoE, Abu Dhabi Global Market (ADGM) and Abu Dhabi Securities Exchange (ADX).

The initiative has been launched with the objective of establishing Abu Dhabi as a regional hub for the issuance of green bonds and green sukuk for sustainable projects in the emirate as well as across the Middle East and Africa.

The green bond market in the Middle East and Africa is worth more than $2 billion with the potential to grow further, a statement said, adding that the overall global green bond market was worth over $230 billion in 2019 and is expected to grow to around $350 billion in 2020.

DoE said it will work closely with ADGM, ADX and other stakeholders to develop this initiative and support sustainable finance in the region.

It added that it will shortly be issuing a consultation paper for the new DoE green bonds policy.

Mohamed Bin Jarsh Al Falasi, Undersecretary of the Abu Dhabi Department of Energy said: “Over the coming months, we will be engaging with stakeholders to further develop this initiative and consider whether blue and transition bonds can also be included. This will continue to establish Abu Dhabi as both a sustainable finance and a green bond hub for the region.”

The bonds will be listed on the ADX and will support only green and sustainable projects that comply with the DoE’s Green Bond Policy.

DoE said it will not itself issue the bonds which will be issued by financial institutions, governments and companies to support green projects and energy and water efficiency inside and outside the emirate.

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