Dubai – Mubasher: Emirates NBD has announced a SAR 100 million ESG-linked working capital facility with Chalhoub Group, the Middle East’s largest luxury goods retailer and distributor.
The financing agreement marks Chalhoub’s first ESG-linked facility, according to a press release.
The deal aligns with both parties’ commitment to driving the sustainable transformation of the Kingdom’s retail sector and boosting their efforts to achieve the goals of Vision 2030.
Pri Mcnair, Group Co-Head of Corporate Coverage, Emirates NBD, said: “We are delighted that we have supported our long-term client Chalhoub Group in expanding their sustainability aspirations to their subsidiary in the KSA, demonstrating that business growth and sustainability are aligned across the organization and synergized across its footprint.”
James Adams, Chief Financial Officer of Chalhoub Group, stated: "We are particularly excited to be launching this in KSA and look forward to continuing the rollout across other countries in the GCC and beyond.”
“This initiative not only underscores our commitment to sustainability but also provides a roadmap for future financing in Saudi Arabia that incorporates environmental, social, and governance principles,” Adams highlighted.
Mohammed Al Dabbagh, Head of Group Treasury at Chalhoub Group, commented: “Through this sustainable finance facility, we are enhancing our accountability, grounded in our belief that achieving ambitious goals requires concerted collective teamwork.”
“Looking ahead, Chalhoub Group and Emirates NBD are exploring the expansion of this Sustainable Finance initiative to other regions, including Egypt and India. This step underscores the group's ambition to lead in sustainable finance, not just in the GCC, but across the broader international markets,” Al Dabbagh mentioned.
In the first half (H1) of 2024, the DFM-listed lender logged net profits valued at AED 13.80 billion.
