In a pivotal moment for sustainable finance and the UAE’s thriving business landscape, Nasdaq Dubai proudly welcomed the debut listing of a USD 350 million Green Bond by FIVE Holdings, a distinguished luxury hospitality and development company based in Dubai. This historic listing marks FIVE Holdings’ first appearance on the renowned international financial exchange and amplifies the region’s dedication to sustainable business practices and Environmental, Social, and Governance (ESG) values.
This comprehensive article will delve deep into the significance of FIVE Holdings’ Green Bond debut, its commitment to sustainable finance, and Nasdaq Dubai’s pivotal role in fostering ESG-aligned listings.
The Green Bond Debut
FIVE Holdings: A Luxury Hospitality Leader
Before we explore the Green Bond, let’s get acquainted with FIVE Holdings. As a prominent luxury hospitality and development company, FIVE Holdings has consistently exemplified excellence. Known for its world-class properties and unwavering commitment to ESG practices, FIVE Holdings is a trailblazer in sustainable indulgence.
USD 350 Million Green Bond
The heart of this story lies in the issuing of a USD 350 million Green Bond by FIVE Holdings. This financial instrument is more than just a bond; it’s a testament to FIVE’s dedication to sustainable finance. The bond carries a coupon rate of 9.375% and is set to mature in 2028, underlining FIVE’s long-term commitment to ESG values.
FIVE’s Steadfast Commitment to Sustainability
FIVE Holdings’ Green Bond listing reinforces its unwavering dedication to sustainable practices. From environmental conservation to social responsibility and robust corporate governance, FIVE Holdings has set a benchmark in the realm of ESG.
Nasdaq Dubai: A Champion of Sustainable Finance
Nasdaq Dubai’s ESG Classified Listings
Nasdaq Dubai has emerged as a pioneering platform for sustainable finance. With FIVE Holdings’ Green Bond listing, the exchange’s total value of ESG classified bonds and sukuk listings now stands at an impressive USD 26.7 billion, demonstrating its leadership in promoting ESG-aligned investments.
The Significance of Nasdaq Dubai
As a key financial platform in the UAE, Nasdaq Dubai is pivotal in attracting listings that align with ESG values. It serves as a beacon for companies committed to environmental stewardship, social impact, and ethical governance.
Commemorating the Milestone
The Market Opening Bell Ceremony
To celebrate this historic achievement, Kabir Mulchandani, Founder and Chairman of FIVE Holdings, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), rang the market opening bell at Nasdaq Dubai. This ceremonial event marked FIVE Holdings’ first issuance on the region’s international financial exchange, solidifying the group’s remarkable accomplishments.
FIVE’s Remarkable Achievements
Kabir Mulchandani, Chairman and Founder of FIVE Holdings, emphasized the company’s commitment to sustainable development and outstanding financial performance. FIVE Holdings achieved a robust EBITDA margin of 42% and earned an ‘A’ rating for ESG by ISS (Institutional Shareholder Services).
FAQs
1. What is a Green Bond?
A Green Bond is a financial instrument designed to fund environmentally sustainable projects. It allows investors to support initiatives that promote environmental conservation and sustainability.
2. Why is FIVE Holdings’ Green Bond listing significant?
FIVE Holdings’ Green Bond listing is significant because it showcases its commitment to sustainable finance and aligns seamlessly with Nasdaq Dubai’s mission to foster responsible and impactful investment opportunities.
3. How can investors participate in Green Bond investments?
Investors can participate in Green Bond investments through purchasing bonds directly or through investment funds that specialize in ESG and sustainable investments.
4. What is ESG, and why is it important?
ESG stands for Environmental, Social, and Governance. It represents a set of criteria that investors use to evaluate a company’s impact on society, the environment, and its corporate governance practices. ESG is important because it encourages responsible and ethical business practices.
5. How does FIVE Holdings contribute to environmental sustainability?
FIVE Holdings contributes to environmental sustainability by ensuring 100% renewable electricity in its Dubai hotels, obtaining International Renewable Energy Certificates (I-REC), and maintaining high governance standards.
6. What role does Nasdaq Dubai play in sustainable finance?
Nasdaq Dubai plays a crucial role in sustainable finance by providing a platform for ESG-aligned listings and promoting investments prioritising environmental, social, and governance excellence.
Conclusion
FIVE Holdings’ inaugural listing of a USD 350 million Green Bond on Nasdaq Dubai is a testament to the company’s unwavering commitment to sustainable finance. This historic event marks a significant milestone in FIVE Holdings’ journey and reinforces Nasdaq Dubai’s position as a leader in sustainable finance in the region. With a dedication to environmental responsibility, social impact, and ethical governance, FIVE Holdings sets a standard for sustainable indulgence, leaving a lasting legacy of financial strength and environmental responsiveness. As the UAE embraces the ‘Year of Sustainability,’ FIVE Holdings and Nasdaq Dubai pave the way for a more sustainable and responsible future in finance.
