- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:33 06:52 12:16 15:13 17:35 18:54
Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region, has successfully arranged a strategic bilateral loan for UAE-based Chalhoub Group, the Middle East’s largest luxury goods retailer and distributor. The short-term loan facility marks the first sustainability-linked loan for Chalhoub Group following the announcement of Chalhoub Group’s Net Zero plan earlier this year, and a recent sustainability-linked working capital facility issued by the Group.
The short-term loan facility has a tenure of one year with the option of being rolled over at maturity. The loan’s pricing structure is linked to Chalhoub Group’s performance against key Sustainable Performance Indicators (SPIs) that will be monitored by Emirates NBD through a third-party annual review, and meeting the set SPIs will result in more competitive pricing on the loan. Chalhoub Group intends to utilize the proceeds from the facility for general corporate purposes and to boost its sustainability objectives, in line with its Net Zero action plan, the UN’s Sustainable Development Goals and the UAE’s Vision 2040.
Commenting on the announcement, Pri Mcnair, Group Co-Head of Corporate Coverage, Emirates NBD, said: “Supporting the retail industry is a key priority for Emirates NBD as we seek to reinforce Dubai’s position as a major global retail hub and bolster the UAE’s efforts to diversify its economy. Strengthening our commitment to being a sustainable financing leader is an important part of this objective, and we are delighted to have structured a facility that aligns with the sustainability goals of our long-term client Chalhoub Group. This is yet another example of our dedication to pioneering bespoke and innovative ESG-linked solutions that will support the global transition towards a sustainable and eco-friendly economy."
James Adams, VP - Treasury at Chalhoub Group, added: “We are delighted to have reached this key milestone with our long-term partners at Emirates NBD. This facility marks the first sustainability-linked loan to incorporate our science based SBTi targets, after our debut working capital facility, aligning our finance KPIs to the Group’s net zero target. Chalhoub Group were early signatories to the UN Global Compact in this region and have been leaders at driving change and best practice.”
Chalhoub Group has partnered with and created luxury experiences across the Middle East for almost 70 years. It has a portfolio of eight owned brands and more than 300 international brands in various categories, including luxury, beauty, fashion, jewellery and art of living.
Follow Emirates 24|7 on Google News.