NBK publishes first green bond allocation and impact report
NBK's green bond was issued in alignment with its Sustainable Financing Framework (or 'Framework'), which received a Second-Party Opinion (SPO) from S&P Global Ratings, an independent provider of sustainability ratings, confirming its alignment with the Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines (SBG) published by the International Capital Market Association (ICMA), in addition to the green and social loans principles by the Loan Market Association (LMA).
The report highlights the value of NBK's eligible green assets portfolio, which reached $625 million as of 31 March 2025, exceeding the value of its $500 million debut green bonds. The Bank's eligible green assets portfolio is distributed among three categories: 76 percent for green buildings, 17 percent for renewable energy, and 7 percent for clean transportation.
Moreover, NBK's first green bond strongly supported the United Nations Sustainable Development Goals (UN SDGs), particularly goal 7 on guaranteeing that clean and affordable energy is accessible to all, and goal 11 on making cities inclusive, safe, resilient, and sustainable. The Bank's first green issuance also promotes its ESG strategy and affirms its support to projects that protect the environment and reduce climate change impact.
Green Buildings
According to the report, NBK owns a portfolio for financing green buildings, which reflects its essential role in accelerating the transition to a low-carbon economy by reducing emissions, improving energy efficiency and promoting urban development. The buildings and construction sector contributes significantly to global climate change, accounting for about 21% of global greenhouse gas emissions.
It also indicated that NBK's green building portfolio achieved sustainability certifications such as Leadership in Energy and Environmental Design (LEED) Gold Certification by the US Green Building Council or an Excellent rating by the Building Research Establishment Environmental Assessment Methodology (BREEAM), which is a British rating system developed by the Building Research Establishment (BRE). The report also mentions that through its green building strategic financing, not only does NBK support climate adaptability and asset value in this field in the long term, but also directly contributes to achieving local, regional and international climate goals.
Renewable energy
At COP29, held in Baku, Azerbaijan, global leaders reaffirmed their commitment to accelerating the energy transition by pledging to triple renewable energy capability by 2030. This ambitious target underscores the urgency of addressing climate change. In line with the global shift towards accelerating the global transition to a low-carbon economy and reducing reliance on fossil fuels; the report sheds the light on NBK's key role in financing utility-scale solar PV, concentrated solar power (CSP) plants, as well as offshore and onshore wind farms, highlighting the Bank's commitment to supporting clean energy infrastructure, reducing emissions, achieving technological gains, and enhancing long-term energy security.
Sustainable transportation
The report highlights the pivotal role of financial institutions in decarbonizing the mobility sector and accelerating the shift toward electrification, both of which are key pillars in building a low-carbon economy by channeling capital towards sustainable mobility solutions. With this established, the report highlights NBK's strategic efforts in promoting this transformation by financing infrastructure and technologies that enable electrification, including electric vehicles, railway expansion, and other sustainable transformation solutions. NBK aims to update its green bond report on an annual basis to highlight any changes that occur to its eligible green asset portfolio.
It should be noted that NBK has come a long way in the ESG field, as it launched its dynamic ESG strategy at the Group-level and made sustainability at the forefront of its priorities in all its operations and culture. NBK's ESG strategy aims to support economic development and stand out as a role model in the field through its four foundational pillars that include Governance for Resilience, Responsible Banking, Capitalizing on Capabilities, and Investing in Communities. NBK's role in propelling sustainable change within the finance sector is one it significantly acknowledges. NBK is focused on supporting its clients in the transition to a low carbon economy and a more sustainable and inclusive future across various business streams.
Key Highlights:
- The net value of NBK's eligible green bond asset portfolio reached USD 625 million as of 31 March 2025, exceeding the value of its USD 500 million debut green bond.
- 80% of eligible green assets are funded by the green bond.
- NBK supported 18 green projects across Europe, North America, Asia-Pacific, and the Middle East.
- NBK's eligible green bond asset portfolio is distributed across three categories: 76% for Green Buildings, 17% for Renewable Energy, and 7% for Clean Transportation.
- The annual financed emissions avoided of NBK's eligible green asset portfolio are estimated at 85,026.40 tons CO2 equivalent.
- Total renewable energy generated of NBK's renewable energy portfolio reached approximately 3,808,759 MWh.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Kuwait Times
a day ago
- Kuwait Times
Al-Ahli Bank of Kuwait Group holds H1 2025 analyst conference call
Bank has successfully executed a number of strategic initiatives over the years KUWAIT: Al-Ahli Bank of Kuwait (ABK) recently hosted its H1 2025 analyst conference attended by Giel-Jan M Van Der Tol, Group CEO; Abdulla Al-Sumait, Deputy Group CEO; Shiamak Soonawalla, Group CFO; Abdulaziz Jawad, Chief Strategy Officer; and Osama Ezzeldin, Assistant General Manager of Strategy and Follow Up. In his opening statement, Van Der Tol said, 'What's clear to me is that ABK has a robust foundation that will be leveraged to unlock and realize the Group's regional aspirations. The Bank has successfully executed a number of strategic initiatives over the years which we are bearing fruit of now. ABK Group will continue to invest in the future and transform itself into a digital-at-core organization.' He shed light on ABK's solid performance, achieving a 9 percent year-on-year increase in net profit with net profit attributable to shareholders rising to KD 31.7 million. Meanwhile, earnings per share held steady at 11 fils and ABK's loan portfolio grew 5 percent year-on-year, supported by its robust credit governance structure. Asset quality also remained solid, with the NPL ratio well controlled at 1.35 percent. Furthermore, ABK's CET1 ratio stood at 11.94 percent and total capital adequacy ratio at 16.96 percent, well above the regulatory requirement, reflecting the strength of its capital base and ability to support future growth. Van Der Tol added, 'We have successfully executed the key initiatives under our ABK2X strategy, which focused on improving efficiencies, strengthening our core franchise and accelerating our digital transformation. As a result, we witnessed a significant improvement in our cost to income ratio, which improved to 42.2 percent, a clear reflection of the benefits realized from our transformation strategy.' Giel-Jan M Van Der Tol Abdulla Al-Sumait Shiamak Soonawalla Abdulaziz Jawad The Group CEO elaborated on ABK's continued advancement in digital transformation. He said, 'Over 15 new features were added to our mobile app enhancing digital applications, payments and account control. Furthermore, as part of our customer experience banking initiative, we upgraded our ATM network with a new interface.' Moving on to ratings, he clarified that Moody's reaffirmed ABK at A2 and Fitch at A, both with a stable outlook and continued confidence in its financial strength, prudent risk management and governance standards. Van Der Tol continued, 'Our regional diversification continues to be a key enabler of sustainable growth. Our international operations, including our UAE branches and ABK-Egypt, contributed a solid 40 percent of operating income and accounted for 37 percent of total assets, highlighting the strategic value of our regional footprint.' He also highlighted ABK employees' unwavering commitment and hard work, who remain a key pillar of its success. He affirmed that the Bank remains focused on fostering an inclusive, high performing culture and empowering local talent with Kuwaitis continuing to occupy 73 percent of leadership positions and female representation reaching 40 percent of human capital. In his final remarks, Van Der Tol claimed, 'As we enter the second half of the year, our focus is clear: drive core profitability, strengthen asset quality and accelerate digital transformation. We remain committed to disciplined execution and delivering sustainable shareholder value.' Strongly positioned Commenting on ABK's overall performance, Al-Sumait stated, 'The Bank will continue to strengthen its position and deliver on its strategic priorities.' He commended the Board of Directors for their steadfast leadership as well as the senior management for their dedication and resilience where their collective efforts have been instrumental in driving progress for ABK. Financial performance Moving on financial performance, Soonawalla highlighted that operating income for the period reached KD 108.8 million, while operating profit stood at KD 62.9 million, reflecting proactive cost management and continued revenue momentum across business lines. Asset quality remained robust with the Group's non-performing loan (NPL) ratio maintained at a healthy 1.35 percent while loan loss coverage ratio held firm at 447 percent, underscoring the stability of ABK's credit metrics. He added, 'We hold provisions amounting to KD 218 million, which exceed IFRS 9 requirements and are in accordance with Central Bank of Kuwait guidelines, reflecting our continued prudent provisioning policy.' The net interest margin (NIM) increased to 2.2 percent driven by improved asset yields and stable funding costs while return on average equity (ROAE) improved to 9.2 percent in H1 2025, showcasing stable earnings and long-term shareholder value. Liquidity and funding remained a key strength for ABK supported by a liquidity coverage ratio of 230 percent and a net stable funding ratio of 108 percent, both comfortably above regulatory thresholds. Customer deposits stood at KD 4.3 billion, representing 67 percent of our total liabilities, highlighting the continued client confidence and the resilience of ABK's funding profile. Soonawalla shared, 'The Group's operational performance advanced significantly in H1 2025 with an 18 percent uplift in operating profit, reflecting improved income generation and tighter cost control. This demonstrates our stronger efficiency and core business growth.' Commercial Banking continued to lead operating income during H1 2025, contributing 51 percent, followed by Retail Banking at 37 percent and Treasury and Investments at 12 percent. Asset allocation also remained strategically balanced, with 56 percent allocated to Commercial Banking, 13 percent to Retail Banking and 31 percent to Treasury and Investments. He continued, 'Our cost to income ratio improved to 42.2 percent in H1 2025, reflecting the success of our focused cost management efforts which delivered a 3 percent year-on-year reduction in operating expenses.' As of H1 2025, total assets expanded to KD 7.2 billion, delivering strong year-on-year growth of 8 percent. In addition, net loans and advances increased by 5 percent to KD 4.7 billion, demonstrating healthy lending activity and prudent balance sheet expansion. Soonawalla summarized, 'Overall, H1 2025 demonstrates the strength of our business model and impact of our focused execution. We delivered solid financial performance, strong risk controls, improved efficiency and robust asset quality. As we enter the second half of the year, we remain committed to sustainable growth and long-term value creation for our shareholders.' Strategic priorities On his part, Jawad affirmed that ABK has continued to execute against its strategic priorities, delivering steady growth across key customer segments, including Kuwaitis, privilege banking and youth. Targeted initiatives focused on product development, digital engagement and service excellence contributed to loan growth that beat market growth. 'We remain disciplined in our underwriting approach while maintaining a healthy risk-adjusted return profile,' he affirmed. In addition to its financial performance, ABK achieved meaningful recognition from leading international institutions. During the first half, the Bank was honored with the Best Digital Transformation Initiative award by MEED and the Elite Quality Recognition award from J.P. Morgan. He said, 'These recognitions reflect the progress we have made in advancing our digital capabilities, strengthening operational delivery and our ongoing efforts to enhance client experience across channels.' Egypt and the UAE Jawad shed light on the business' continued strong performance in Egypt where it obtained PCI-DSS certification, reinforcing digital security standards. ABK-Egypt was also recognized by International Business Magazine as the Fastest Growing Retail Bank in 2024. He continued, 'In addition, we strengthened our digital payments proposition through a strategic partnership with Visa and launched a suite of tailored wealth solutions to support our affluent client base. These developments are aligned with our commitment to innovation, segmentation and service excellence.' In parallel, ABK Capital, the investment arm of the Group, has established its subsidiary at the Dubai International Financial Centre (DIFC) after receiving approval from the Dubai Financial Services Authority (DFSA). This marks a significant strategic milestone in our efforts to expand ABK's regional and international presence. Jawad claimed, 'The new entity strengthens our investment platform, enabling us to access key financial markets and deliver enhanced value to our clients and stakeholders across a broader geographic landscape.' ESG Last but not least, Jawad emphasized that ESG remains a central pillar of ABK's long-term strategy, fully aligned with Kuwait Vision 2035. He stated, 'We are embedding ESG into our culture and operations through initiatives focused on climate resilience, responsible banking, financial inclusion and community impact.' He also highlighted the strong progress made on climate action by transitioning all ABK facilities to LED lighting, reducing Scope 2 emissions. On the governance front, climate considerations have been integrated into policies and processes. Additionally, ABK is growing its sustainable finance portfolio by funding projects with positive environmental outcomes. He concluded, 'We remain focused on execution, agility and delivering shareholder value. We are well-positioned to navigate the evolving operating environment and capitalize on emerging opportunities. Our strategic direction remains clear and we are committed to driving disciplined growth, strengthening our franchise and upholding our leadership in financial stewardship and sustainability.' Giel-Jan M Van Der Tol The Bank has successfully executed a number of strategic initiatives over the years which we are bearing fruit of now. Abdulla Al-Sumait The Bank will continue to strengthen its position and deliver on its strategic priorities. Shiamak Soonawalla Overall, H1 2025 demonstrates the strength of our business model and impact of our focused execution.
Kuwait Times
3 days ago
- Kuwait Times
NBK warns against transactions using airport Wi-Fi networks
Bank urges turning off automatic joining, refraining from saving sensitive data on the phone KUWAIT: In line with its continued support for the 'Let's Be Aware' campaign launched by the Central Bank of Kuwait in collaboration with Kuwait Banking Association, National Bank of Kuwait reiterates its warnings to customers about the risks of using public Wi-Fi networks, with a particular focus on the increased risks at airports and cafes, coinciding with the busy summer travel season. The aim of this campaign is to enhance financial literacy and raise awareness about digital safety principles among various society segments, including awareness messages on fraud protection, fake ads, and banking app hacks, in addition to emphasizing the need to report any suspicious transactions. To this end, NBK has warned against making any banking transactions using public Wi-Fi networks, as they are unsafe, unprotected, and can be easily hacked, as it is common for multiple public Wi-Fi networks to have the same name. With the increasing number of passengers, free Wi-Fi networks in airports and cafes have become main targets for scammers, which is why NBK highlighted the necessity of using anti-virus and anti-hacking programs, as well as securing the Internet connection and verifying the ads generated from these networks. NBK also stressed the importance of turning off Wi-Fi and automatic joining and refraining from saving personal data to avoid any hacking attempts of sensitive and personal information. NBK's efforts to educate its customers are a fundamental pillar of its strategy, as it consistently emphasizes the need for customers to adhere to general instructions and guidelines to avoid digital fraud, as well as the importance of regularly changing bank card PINs and not sharing them with fraudsters claiming to be from the bank. NBK is utilizing all its digital channels, which have the highest number of followers among all banks in Kuwait, to support CBK's efforts in protecting customers and the economy. It is worth mentioning that NBK is a key supporter and partner in all CBK's initiatives and campaigns aiming to raise financial awareness and spread banking culture among all segments of society. As a leading financial institution in Kuwait and across the region, NBK frequently organizes various activities that contribute to raising awareness about all topics related to the banking sector. It also organizes various activities and training courses on fraud prevention and financial crimes. As one of the largest financial institutions in the region, NBK is committed to its social responsibility towards the communities in which it operates, and it is always proactive in providing all forms of support for important and strategic campaigns, such as the 'Let's Be Aware' campaign, which serves the national economy and society.
Kuwait Times
4 days ago
- Kuwait Times
Burgan Bank launches ‘Data Champion' bootcamp in partnership with CODED
Bank reaffirming its commitment to fostering a data-driven culture KUWAIT: As part of its ongoing investment in human capital and commitment to fostering a culture of continuous learning, Burgan Bank announced the launch of its latest Learning and Talent Development (LTD) endeavor: the Data Champion bootcamp. Developed in strategic partnership with CODED – the region's first dedicated coding academy – the program is the first of its kind in Kuwait, designed to build data fluency across the Bank and deepen its digital transformation efforts. This intensive, month-long internal bootcamp aims to upskill employees from across Burgan Bank's departments with essential data analytics capabilities, enabling them to extract insights, drive smarter decisions, and accelerate customer-centric innovation. 'In today's fast-moving digital banking landscape, digital transformation and data literacy is more than a competitive edge – it's a business imperative,' said Fatma Ahmad, Senior Manager – Learning and Development at Burgan Bank. 'A true transformation lies in embedding data thinking into every part of the Bank's operations. Through this program, we're empowering our Employees with the tools and mindset to harness data effectively – and ultimately deliver a smarter, more seamless banking experience.' Fatma Ahmad Hashim Behbehani For his part, Hashim Behbehani, Co-Founder and Chief Operations Officer of CODED, said: 'We are proud to host Burgan Bank's Data Champion Program, which marks a truly forward-thinking initiative from Burgan Bank that invests in the technical upskilling of its employees. This program was specifically designed around real banking scenarios. It is meant to be practical and intensive, to deliver direct impact not only on the performance of participants – but also the various Burgan Bank departments they serve.' He added: 'This collaboration reflects Burgan Bank's deep-rooted belief in the importance of investing in national talent, which echoes CODED's vision to place Kuwait on the global technology map. We are grateful Burgan Bank for their ongoing trust and look forward to seeing the tangible results of this program.' To ensure the organizational alignment on adopting a data-driven mindset, 12 employees representing different departments within the Bank – will be selected to attend the bootcamp. Throughout the program, participants will receive hands-on training in Power BI, Excel Dashboards, and Data Storytelling, in addition to modules on data management, data analytics, and data modeling, supported by real-world case studies tailored to banking scenarios. This initiative also aligns closely with Burgan Bank's sustainability strategy, particularly in the areas of human capital development, digital transformation, and national talent empowerment. By equipping employees with cutting-edge data skills and fostering a culture of innovation, the Bank reinforces its long-term commitment to responsible growth and inclusive progress. The program further supports Kuwait's Vision 2035 by nurturing local talent in partnership with a homegrown tech institution, CODED, while also enhancing employee engagement and organizational resilience hallmarks of Burgan's sustainable development vision. The bootcamp will culminate in a collaborative capstone project, where participants will demonstrate their ability to apply data concepts to real business challenges. Graduates will be formally recognized upon completing the requirements of 'Data Champions Bootcamp'. It serves to note that Burgan Bank, a certified Great Place to Work with a mission of becoming an employer of choice on the national level, currently houses one of the most robust and comprehensive LTD programs within the sector, A dynamic program with an expansive vision, Burgan Bank's LTD strategy offers employees year-round opportunities for personal and professional growth.
