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Masdar Green REIT seals $200m finance deal with FAB

ABU DHABI, January 19, 2022

Abu Dhabi’s renewable energy company Masdar said its green real estate investment trust (REIT) has signed a financing commitment worth $200 million with First Abu Dhabi Bank relating to financing of the REIT portfolio to facilitate further acquisitions and portfolio growth. 
 
Masdar Green REIT is the first in the UAE to invest solely in sustainable real estate projects such as Masdar City in Abu Dhabi. 
 
The Masdar announcement comes 12 months after Masdar City partnered with Emirates NBD Asset Management to receive management services for the UAE’s first sustainable REIT. 
 
It was made during an official signing ceremony held at the 4th Abu Dhabi Sustainable Finance Forum during Abu Dhabi Sustainability Week - the global platform for accelerating sustainable development hosted by Masdar. 
 
"Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific environmental, social and governance (ESG) practices criteria," remarked Abdulla Balalaa, the Executive Director, Masdar City and Chairman of the REIT. 
 
"The Masdar Green REIT’s portfolio currently includes four commercial properties within Masdar City, which is the pioneering sustainable urban development project, and technology innovation hub, in Abu Dhabi," he stated. 
 
For this transaction, FAB will act as sole mandated lead arranger and bookrunner, green loan coordinator, agent, security agent and account bank.
 
As the UAE's largest bank and one of the world's largest and safest financial institutions, FAB is a regional leader for sustainable finance in the Middle East. 
 
FAB issued the region’s first green bond in 2017 and has financed over $30 billion in sustainable projects to date. 
 
"Its financing will help the REIT in building its sustainable real estate portfolio through additional acquisitions of properties in Masdar City. The proceeds of these acquisitions will in turn assist Masdar City to bring more sustainable real estate assets to market through new sustainable developments and continuing its future expansion," he added.
 
Mustafa Al Khalfawi, Head of Global Banking UAE and Global Head of Government, Sovereigns & Public Sector, Investment Banking Group, said: “First Abu Dhabi Bank has made a commitment to fund projects that deliver tangible environmental and social benefits, and we are leading the way forward in financing the transition to a more sustainable future. As one of our strategic clients, we are delighted to support Masdar City in this landmark transaction, with an innovative and flexible financing structure to enable the Masdar Green REIT to fulfil its strategic objectives."
 
"The transaction serves to underline FAB’s ongoing commitment to Masdar and sustainable financing, and we look forward to further deepening our relationship as Masdar implements its exciting plans to grow its high-quality portfolio," he added.-TradeArabia News Service



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