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Kuwait Times
16-05-2025
- Business
- Kuwait Times
NBK publishes first green bond allocation and impact report
KUWAIT: In line with its leading and responsible role in the banking industry, National Bank of Kuwait continues to advance confidently towards building a sustainable future by implementing its environmental, social and institutional governance strategy and launching initiatives as per international standards and practices. In light of this, NBK published its first allocation and impact report for its debut $500 green bond issued in June 2024, which is the first issuance of its kind in Kuwait. The report provides relevant information that details the proceeds' allocation from the green bond as of 31 March 2025and the estimated environmental impact during the reporting period. 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.
Al Bawaba
27-02-2025
- Business
- Al Bawaba
Bank ABC announces its Sustainable Finance Framework advancing its Sustainability Strategy
Bank ABC is proud to announce the launch of its Sustainable Finance Framework (the 'Framework'), a comprehensive guide outlining the Bank's approach and methodology for Sustainable Finance. The Framework establishes clear eligibility criteria for green, social, sustainable, sustainability-linked and transition finance projects, ensuring alignment with the Group's broader Sustainability Strategy. Bank ABC's Group CEO, Sael Al Waary, commented: 'The banking industry plays a central role in facilitating the transition towards a more sustainable global economy. At Bank ABC, we have embedded sustainability at the core of our strategy, and Sustainable Finance is a key pillar of this commitment. The launch of our Sustainable Finance Framework marks another key step in our journey, enabling us to continue to support our clients to achieve their sustainability goals.'Developed in line with global best practices, the Framework sets out the environmental and social metrics that financing activities must meet to be classified as sustainable by Bank ABC. As part of our commitment to good governance and transparency, Bank ABC obtained a Second Party Opinion (SPO) and External Review from ISS-Corporate, a leading global SPO provider. ISS-Corporate validated that our Framework is fully aligned with the International Capital Market Association's (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines (SBG), the Loan Market Association (LMA) Green Loan Principles (GLP) and Social Loan Principles (SLP) and contributes to the achievement of the UN Framework will be periodically reviewed in line with market practice, and the Bank intends to provide annual impact reporting, which will be published on its website. Bank ABC's Sustainability Finance Framework can be accessed independent Second Party Opinion and External Review, conducted by ISS-Corporate, is available here. © 2000 - 2025 Al Bawaba ( Signal PressWire is the world's largest independent Middle East PR distribution service.
Trade Arabia
26-02-2025
- Business
- Trade Arabia
Bank ABC announces its Sustainable Finance Framework
Bank ABC has announced the launch of its Sustainable Finance Framework, a comprehensive guide outlining the bank's approach and methodology for sustainable finance. The framework establishes clear eligibility criteria for green, social, sustainable, sustainability-linked and transition finance projects, ensuring alignment with the group's broader sustainability strategy. Bank ABC's Group CEO, Sael Al Waary, commented: 'The banking industry plays a central role in facilitating the transition towards a more sustainable global economy. At Bank ABC, we have embedded sustainability at the core of our strategy, and sustainable finance is a key pillar of this commitment. The launch of our Sustainable Finance Framework marks another key step in our journey, enabling us to continue to support our clients to achieve their sustainability goals.' Developed in line with global best practices, the framework sets out the environmental and social metrics that financing activities must meet to be classified as sustainable by Bank ABC. As part of its commitment to good governance and transparency, Bank ABC obtained a second party opinion (SPO) and external review from ISS-Corporate, a leading global SPO provider. ISS-Corporate validated that the framework is fully aligned with the International Capital Market Association's (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP), Sustainability Bond Guidelines (SBG), the Loan Market Association (LMA) Green Loan Principles (GLP) and Social Loan Principles (SLP) and contributes to the achievement of the UN SDGs, the bank said.
