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.
About Emirates NBD
Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region with a presence in 13 countries, serving over 20 million customers. As at 30th September 2023, total assets were AED 836 billion, (equivalent to approx. USD 228 billion). The Group has operations in the UAE, Egypt, India, Türkiye, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 853 branches and 4,213 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.89 billion.
Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv, the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region.
Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is committed to supporting the UAE’s Year of Sustainability as Principal Banking Partner of COP28 and an early supporter to the Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water.
For further information on Emirates NBD, please contact:
Senior Vice President
Head - Group Corporate Affairs
Telephone: +971 4 609 4113 / +971 50 6538937
Telephone: +971 2 234 4600 / +971 56 1770899