MENA green bonds see 155% jump in issuances; UAE, Saudi Arabia lead

MENA green bonds see 155% jump in issuances; UAE, Saudi Arabia lead

Mubasher: The UAE and Saudi Arabia have dominated regional green bond league tables in 2023 with a combined 77% of total issuances in MENA, based on data from Bloomberg’s Capital Markets League Tables.

The region witnessed an annual surge of 155% in issuances of green social, sustainable, and sustainability-linked bonds (GSSB) that hit a new record close to $24 billion.

The UAE led MENA green bonds’ issuances with sales standing at $10.70 billion, which came 170% higher and accounted for nearly 45% of regional totals in 2023.

UAE corporates and government entities recorded $7.95 billion worth of issuances in total, while the 11 debut green issuers included bonds or Sukuk from the following:

DP World Sukuk with $1.50 billion

The Government of Sharjah with $1 billion

Abu Dhabi National Energy (TAQA) with $1 billion

Emirates NBD, Masdar, and Mubadala with $750 million each

Aldar sukuk as well as Commercial Bank of Dubai (CBD) each with $500 million

Five Holdings with $350 million

This was in addition to green Sukuk worth $750 million from Dubai Islamic Bank (DIB) and $500 million from Abu Dhabi Islamic Bank (ADIB).

Saudi Arabia followed the UAE with 32% of total regional volumes, registering an annual increase of 69%.

The Public Investment Fund (PIF) was the region’s largest