Deutsche Bank, #UAE's FAB execute Middle East's first green repo transaction | ZAWYA MENA Edition

Deutsche Bank, UAE's FAB execute Middle East's first green repo transaction | ZAWYA MENA Edition

First Abu Dhabi Bank (FAB), the UAE's largest bank, has executed the first green repurchasing (repo) transaction in the Middle East, structured with Deutsche Bank.

A repurchase agreement (repo) is collateralised borrowing undertaken by a bank as part of interbank financing.

Under this agreement, FAB received EM Eurobonds collateral from Deutsche Bank and provided US dollar financing in exchange, according to a statement from the banks. However, the banks did not disclose the size of the transaction or interest rates.

Deutsche Bank will deploy the funds into green financing activities such as development of renewable energy and the improvement of energy efficiency and conservation.

Martin Tricaud, Group Head of Investment Banking at FAB said: “There is a rapidly growing demand for high-quality green financing solutions, both globally and regionally, as businesses and governments commit to net-zero targets on greenhouse gas emissions, and FAB aims to set an example for sustainability-related financing in our region. Seen against the backdrop of the COP26 climate summit, this transaction shows the financial sector working collaboratively to deliver successful and impactful financial solutions.”