Apparel Group signs pioneering ESG-linked term finance deal with Emirates Islamic and Emirates NBD

2 Min | 01 December 2023

Dubai, UAE, 30 November 2023: Apparel Group, a leading fashion and retail conglomerate with a robust global presence, headquartered in the UAE, announced the signing of ESG-linked term facilities with Emirates Islamic, a leading Islamic financial institution in the UAE and Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region.

The financing deal between Apparel Group, Emirates Islamic and Emirates NBD remains aligned to their shared strategic focus on advancing sustainability, simultaneously tackling significant Environmental, Social, and Governance (ESG) factors in the fashion and retail industry. The innovative initiative also sets a new benchmark for the fashion and retail industry in the UAE, showing that financial prosperity and sustainability can go hand in hand.

The two banks partnered with Apparel Group to embed key performance indicators, aligned with the company’s sustainability strategy within its financing structure. The incentives structured in the term facility agreement are strategically concluded to synergise with Apparel Group's sustainability performance objectives, thereby reflecting the company's dedication to the UAE's long-term environmental goals. This approach benefits Apparel Group and its stakeholders and contributes positively to the planet. Overall, the financing acts as a pioneering model for players in the retail and fashion industries seeking to make a positive impact on the environment and society, directly aligning with the UAE’s Net Zero by 2050 Strategic Initiative.

Farid Al Mulla, CEO of Emirates Islamic, said: “Allocation of capital towards UAE-based businesses that are focused on sustainability is crucial in expediting the nation’s green transition through responsible governance. Islamic finance inherently aligns with such values and principles. Emirates Islamic remains committed to fostering its sustainability journeys and those of its customers, and stakeholders. Our pioneering ESG-linked finance programme with Apparel Group sets a precedent that other companies and banks can emulate to positively influence environmental and societal well-being.”

Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, said: “As Principal Banking Partner of COP28, Emirates NBD is committed to pioneering innovative financial solutions that incentivise and empower companies to embrace more sustainable practices. This ESG-linked financing agreement with Apparel Group is a prime example of how we are enabling businesses to align their growth with sustainable objectives. By embedding our customers’ sustainability KPIs into our financing solutions, we are not only enabling their sustainable growth but also fostering a greener economy. This partnership with Apparel Group is a contribution towards UAE’s ambition of achieving its Net Zero 2050 goal.”

Neeraj Teckchandani, CEO of Apparel Group, said: “As we mark this significant milestone with Emirates NBD and Emirates Islamic, Apparel Group further strengthens its strategic commitment to sustainable development, echoing the UAE's vision for a greener economy. Our ESG-linked financing agreement is more than a financial endeavour; it's a mutual pledge towards long-term environmental stewardship, social prosperity, and exemplary governance. The synergy with Emirates NBD Group on our high standards and strategic goals fortifies the foundation of this partnership, and we are excited about the role this collaboration will play to advance our sustainability agenda and contribute to the UAE's progressive leadership in responsible business.”

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