First Abu Dhabi Bank Launches Sustainability-Linked Current Account with Landmark Retail
First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, has launched a new sustainability-linked current account for corporate clients, extending its leadership as an environmental pacesetter for the UAE banking sector. The new FAB Sustainable Account will support clients in achieving ESG objectives by contributing to sustainable developments, integrated into their everyday cash management.
As with a traditional current account, FAB corporate clients will use the FAB Sustainable Account to retain their intraday liquidity for business needs, and to carry out everyday payables and receivables. Meanwhile, FAB will ensure that cash amounts held in the account are used to fund sustainable projects based on FAB’s Sustainable Finance Framework.
Landmark Retail, the region’s leading omnichannel retailer, is the first corporate to open a sustainable current account with FAB in line with its commitment to convert its Treasury products to sustainable ones.
The account is a key expansion of FAB’s growing portfolio of ESG-linked products and services, including sustainability-linked loans and green bonds. It also demonstrates FAB’s continued leadership on sustainability within the banking sector, which includes being the first UAE and GCC bank to issue a green bond in 2017 and the first to join the global Net-Zero Banking Alliance in 2021.
See related article: First Abu Dhabi Bank To Announce 5-Year Green Bonds
Mustafa Al Khalfawi, Head of Global Banking UAE & Global Head of Government, Sovereigns & Public Sector at FAB, said: “We are pleased to partner with Landmark Retail in piloting our new sustainable account offering in the UAE. This partnership demonstrates our staunch commitment to key stakeholders in our core market as they embark on strategic and operational shifts necessary to deliver on their ESG aspirations. Looking ahead, we will continue to work closely with our strategic partners in endorsing a shared ESG agenda by introducing innovative and impactful solutions to their core banking requirements.”
Sanjay Sethi, Senior Managing Director and Head of Global Transaction Banking at FAB, said: “FAB understands that many clients want to do more to address climate change and contribute to initiatives that support a greater environmental and social purpose, but at the same time must balance this against fulfilling their business needs. The FAB Sustainable Account brings clients’ corporate and environmental objectives together, embedding sustainability into their cash management.”
Commenting on the sustainable account opening, Rajesh Garg, Chief Financial Officer at Landmark Retail who also leads the organization’s sustainability agenda, said: “Landmark Retail has been about Affordable & Accessible product offering for all. We are committed to being a Circular & Climate positive business 360 degrees across our value chain – driving Sustainable Products, Sustainable Operations & Sustainable Customer Journeys. Earlier this year we had announced our intent to convert our Treasury products to sustainable ones with the support of our banking partners. We are delighted to partner with FAB by placing our liquidity with the bank in a sustainable current account.”