$100mln funds to support e&’s sustainable projects

Leading technology firm e& has signed an agreement to secure a sustainable loan of AED 366 million ($100 million) to support its climate action initiatives that were announced at the ongoing COP28 summit in Dubai.

This marks a crucial stride towards funding sustainable projects with immediate positive impacts on communities, the company said in a statement.

e& Sustainable Finance Framework, which supports environmental, social and governance strategy, aims at catalysing change through the issuance of a range of sustainable finance instruments, including green, social and sustainability bonds/loans.

This initiative is aligned with industry best practice and standards, such as the International Capital Market Association (ICMA) Green Bond Principles, and enables responsible finance in driving climate transition in the technology sector.

Under the framework, e& signed the deal for $100 million green loan to finance or refinance sustainable development projects covering renewable energy, clean transport and energy efficiency.

The framework will facilitate future funding of projects focusing on sustainable development, including sustainable water supply, waste management, green buildings and pollution prevention, in order to make a social impact.

"Following e&'s ambitious climate commitments at COP28 to achieve net zero carbon emissions by 2040 in our own operations across all markets, the signing of our first green loan is a landmark moment for the group. It encapsulates our vision for integrating sustainability into our operations and financing strategies,” the group’s chief executive officer, Hatem Dowidar, said.

“With this financing, we are not only reinforcing our commitment to a zero-carbon future, but also driving sustainable innovation in the technology landscape across all our markets.”

e& Sustainable Finance Framework has been assessed by Morningstar Sustainalytics, which asserts that it is credible, impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023, and Social Loan Principles 2023.

The finance framework goes beyond being a mere financial instrument by creating a strategic method for cultivating a sustainable future, e& said in a statement.

This reflects the group's harmony with the UAE's vision and worldwide endeavours to combat climate change, emphasising e&’s leadership in the technology sector towards a more sustainable and responsible path, it said.