Emirates NBD announces ESG-linked working Capital facility with Chalhoub Group

3 Min | 25 September 2024

Agreement was announced at special ceremony hosted by Emirates NBD at the bank’s Jeddah premises

Emirates NBD, the leading banking group in the MENAT (Middle East, North Africa and Turkey) region, has announced an ESG-linked working Capital facility with Chalhoub Group, the Middle East’s largest luxury goods retailer and distributor.

Marking the first ESG-linked facility for Chalhoub group, the agreement is a testament to a long-standing partnership with both parties. Officially announced on September 2, 2024, at a signing ceremony hosted by the leading bank at its branch in Jeddah, the arrangement underscores both companies’ commitment to driving the sustainable transformation of the Kingdom’s thriving retail sector and furthers their efforts to achieve the goals of Vision 2030 and reach the country’s sustainability targets.

Crucially, the agreement strengthens Chalhoub Group’s ability to successfully implement its sustainability strategy, empowering the leading retailer and distributor to put its net zero plan into action.

Bringing leaders and senior officials from both entities together, the special signing ceremony shone a light on Emirates NBD and Chalhoub Group’s collective efforts to safeguard the future of the Saudi retail sector — and business as a whole — by mapping out a detailed action plan anchored in ESG principles.

The event was attended by Mohammed Aldabbagh, KSA Managing Director, Chalhoub Group. He was joined at the ceremony by the retail operator’s General Manager – Operations and Finance, Omar Zaouiri; Director of Finance, Furqan Akhai; Director, Country Management, Ayah Yamani and Group Treasurer, James Adams.

Emirates NBD was represented at the gathering by the bank’s Group Co-Head of Corporate Coverage, Corporate and Institutional Banking, Pri McNair; Country Head, Corporate and Institutional Banking, Ahmed Alghamdi; Western Region Head - Corporate & Institutional Banking, Wisam Albaiyat; and Head of Multinationals Corporate & Institutional Banking, Georges Francis.

Pri Mcnair, Group Co-Head of Corporate Coverage, Emirates NBD, said: “Supporting a just and fair transition in the retail industry by being a leader in sustainable financing is a key priority for Emirates NBD, and we are delighted that we have supported our long-term client Chalhoub Group in expanding their sustainability aspirations to their subsidiary in the KSA, demonstrating that business growth and sustainability are aligned across the organization and synergized across its footprint. This also exemplifies our commitment to being industry pioneers for bespoke and innovative ESG-linked solutions that bolster the global transition towards a sustainable economy.”

Ahmed Al Ghamdi, Head of Corporate & Institutional Banking of Emirates NBD, KSA, said: “At Emirates NBD KSA, we strive to provide our clients with innovative ESG-linked solutions to support their sustainable growth ambitions and overall ESG objectives. We are proud to expand on the sustainable finance facility signed by Chalhoub Group at COP28 into the Saudi market, marking the Group’s first sustainable finance facility in KSA with Emirates NBD. This is a clear demonstration of our dedication to working closely with our customers and wider stakeholders to progress together towards reaching a sustainable low carbon economy, as well as our support for the KSA’s ambitious Vision 2030 and its overarching sustainability efforts and goals.”

J. Adams, Group Treasurer, Chalhoub Group, stated: "This marks the successful extension of our Sustainable Finance Framework with Emirate NBD. We are particularly excited to be launching this in KSA and look forward to continuing the rollout across other countries in the GCC and beyond. This initiative not only underscores our commitment to sustainability but also provides a roadmap for future financing in Saudi Arabia that incorporates environmental, social, and governance principles. We believe that through collaborative efforts and strategic partnerships, we can achieve significant milestones in our sustainability journey.

M. Aldabaagh, Managing Director KSA, Chalhoub Group, commented, “We thank our partners at Emirates NBD for their support with our first Sustainable Finance Facility in Saudi Arabia and look forward to building on this success. Sustainability is a key part of our Group strategy, and we are proud of this collaboration that aligns with our long-standing commitment to environmental, social, and governance principles. Our dedication to fostering responsible practices and driving positive environmental and social impact is at the heart of our Group. Through this sustainable finance facility, we are enhancing our accountability, grounded in our belief that achieving ambitious goals requires concerted collective teamwork.”

M. Aldabaagh, added “Looking ahead, Chalhoub Group and Emirates NBD are exploring the expansion of this Sustainable Finance initiative to other regions, including Egypt and India. This step underscores the Group's ambition to lead in sustainable finance, not just in the GCC, but across the broader international markets”.

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