ADIB allocates $61mln provision for first green finance deal in Saudi Arabia

ADIB allocates $61mln provision for first green finance deal in Saudi Arabia

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ABU DHABI- Abu Dhabi Islamic Bank (ADIB), a leading financial institution, announced today the provision of US$61 million in financing for green-certified projects in Saudi Arabia.

In collaboration with MUFG, Alimna Bank, Riyad Bank and Siemens Bank, US$480 million of green finance was allocated for three independent sewage treatment plants (ISTP) in the Kingdom.

ADIB acted as mandated lead arranger, hedge provider and Islamic finance agent for this transaction. In accordance with Saudi Arabia’s Vision 2030, its blueprint for sustainable development and economic diversification, the three ISTPs will treat the wastewater of up to 2 million inhabitants and contribute to national efforts to conserve and reuse water.

The key environmental features of the ISTP projects include the recycling of wastewater for agricultural activities, the treatment and reuse of sewage sludge for agricultural use as fertiliser, for cement manufacturing, and the use of renewable electricity to power the wastewater treatment plants.

The developer of the ISTPs, ACCIONA, together with its local partners Tawzea and Tamasuk, is a leading company in the development of water and other sustainable infrastructure in Saudi Arabia. The financing structure for the three projects – Madinah-3, Buraydah-2, and Tabuk-2 – incorporates an Islamic tranche for 60 percent of the value of