Dubai—Dentons has advised Aldar Properties (Aldar) on a sustainability-linked loan of AED300 million from HSBC Bank Middle East. The five-year financing agreement links the payable interest margin to Aldar's sustainability targets, reinforcing Aldar's commitment to these goals.
The transaction is structured in alignment with the Sustainability-Linked Loan Principles (SLLP) published by the Loan Market Association (LMA), Asia Pacific Loan Market Association (APLMA), and Loan Syndications & Trading Association (LSTA), believed to be the first of its kind not only for Aldar but also Middle East corporates generally.
Aldar will use the loan for general corporate purposes, including planned environmental, social and governance (ESG) group initiatives. Further details can be found here. https://www.aldar.com/en/News-and-Media/Aldar-Signs-to-Become-The-First-Mena-Real-Estate-to-Secure-Sustainability-Linked-Loan.
Banking and finance partner Stephen Knight, based in Dentons' Abu Dhabi office, commented: "We are delighted to have worked with Aldar on yet another landmark transaction. ESG-linked initiatives are currently a key area for our clients, and also for Dentons as a firm. We have seen strong interest in sustainability linked loans from both our corporate and banking clients in the Middle East, especially since the launch of the SLLPs and we are proud to have worked alongside valued clients, Aldar and HSBC, in bringing this first-of-its kind financing to the region".
The Dentons team in Abu Dhabi was led by partner Stephen Knight, with assistance from associate Michael Henning.
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