Abu Dhabi - Mubasher: First Abu Dhabi Bank (FAB) has conducted the Middle East's first green repurchasing (repo) transaction, structured with Deutsche Bank.
Under this agreement, FAB receives EM Eurobonds collateral from Deutsche Bank and provides US dollar financing in exchange, and Deutsche Bank will deploy the funds into green financing activity as outlined in its Green Financing Framework, according to a press release on Monday.
A repurchase agreement (Repo) is collateralised borrowing undertaken by a bank as part of interbank financing.
The Group Head of Investment Banking at FAB, Martin Tricaud, 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."
Meanwhile, the Head of Institutional Client Group CEEMEA and Chairman of the Investment Bank for MEA at Deutsche Bank, Esra Turk, commented: "Deutsche Bank has placed sustainability at the core of its business and we are committed to supporting our clients transition to a net-zero carbon economy."
