Following the country’s ambitious climate-positive actions, Dubai Islamic Bank (DIB), the largest Islamic bank in the United Arab Emirates, has announced its inaugural Sustainability-Linked Finance Facilities Financing Framework. This Framework, which is in line with ICMA’s SLLBG is the first of its kind to be published by an Islamic bank globally.
The Framework provides clear definitions for what qualifies as eligible Sustainability-Linked Finance Facilities (SLF) and will enable DIB to issue instruments with proceeds allocated to finance and/or refinance such SLF Facilities, which contribute to Climate Change Mitigation.
To ensure end-to-end credibility and impact in Climate Change Mitigation, the Framework includes predefined Key Performance Indicators and Sustainability Performance Targets aligned with ICMA’s SLLBG. Eligible SLF Facilities under the Framework follow LMA’s SLLP.
Dr. Adnan Chilwan, Group Chief Executive Officer at Dubai Islamic Bank, said: “Having published our debut Sustainable Finance Framework in 2022, the development of this new Framework is an important step in our ESG journey. The Framework underpins a key pillar in our Sustainability Strategy – ‘Finance a Sustainable Future’ – and will contribute to the bank’s commitment to achieving 15% of our portfolio in Sustainable Finance by 2030.”
Dr. Chilwan added: “Additionally, the Framework will support existing and new customers within and outside the region who are embarking on transforming their current business model into a more sustainable and future-proof one, with clear commitments to environmental and climate-positive impacts over the journey”
An allocation and impact report will be published at least annually throughout the lifetime of the Sustainability-Linked Finance instruments. SLF Facilities included in the report will be subject to a Second Party Opinion (SPO) and the report will also receive limited assurance by an independent party.
DIB has obtained an SPO from ISS-Corporate (ISS) which assessed the Framework as aligned with ICMA’s SLLBG. Standard Chartered Bank supported the development of the Framework as the sole service provider.
In addition to this milestone, DIB has also renewed its Asset-Based Sustainable Finance Framework in 2024, which also received a Second Party Opinion from ISS.
