Chalhoub Group secures SAR100m ESG facility from Emirates NBD

Emirates NBD, a leading banking group in the MENAT region, has announced a SAR100million (US$26.7m) ESG-linked working capital facility with Chalhoub Group, the Middle East’s largest luxury goods retailer. This marks Chalhoub’s first ESG-linked facility, highlighting their long-term partnership and commitment to sustainable transformation in Saudi Arabia’s retail sector, aligned with Vision 2030 goals.

The agreement, signed on September 2, 2024, strengthens Chalhoub Group’s sustainability strategy, enabling the implementation of its net-zero plan. Both companies aim to support Saudi Arabia’s sustainability targets while exploring expansion into other regions, such as Egypt and India.

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 organisation and synergised 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.”