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UAE eyes first sukuk to fund green energy projects

Sharia compliant green bond could be issued as soon as next month, say reports.

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Green bond, Sukuk, News

 The UAE could issue the world’s first Sharia-compliant bond to finance renewable energy projects.

A sukuk intended for green energy projects could be issued in the UAE as soon as April, according to reports.

“We are going to get one, possibly two [green sukuk] in the UAE in April,” Sean Kidney, the chief executive and co-founder of London-based Climate Bonds Initiative (CBI), told The National newspaper.

Green bond issuance reached $36.6 bn globally last year and at least $50bn of green bonds are forecast to be issued this year – although Kidney said he expects numbers to hit $100bn.

The National quoted Andy Cairns, managing director of debt origination and distribution at National Bank of Abu Dhabi, as saying the bank is currently in discussions with potential issuers.

“I am optimistic that we will see the first green issuance out of the region and into the region during this year,” he said.

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