​​December 12th, 2023, Manama, Bahrain: Bank ABC, MENA’s international banking powerhouse headquartered in the Kingdom of Bahrain, has today announced the signing of a financing agreement with Yellow Door Energy, the leading sustainable energy partner for businesses in the Middle East, Africa and beyond. The signing ceremony was held at the Bank ABC branch at the Dubai International Financial Centre (DIFC). 

In line with COP28 UAE’s Climate Finance objectives, the facility will refinance 25 solar PV assets, totaling over 42 megawatts, located on Majid Al Futtaim shopping malls across the UAE, Bahrain, and Oman. The multi-million-dollar non-recourse long-term financing provides much needed climate finance to support renewable energy in the GCC and advance the just transition. 

During the signing ceremony, Ammar Khalil, Senior Executive Officer, Bank ABC in DIFC, remarked: “We are pleased to partner with Yellow Door Energy to finance this solar PV project, which assists Majid Al Futtaim’s energy transition plans in the region. This transaction underscores Bank ABC Group’s commitment to empower clients to lead the transition towards a more sustainable, low carbon economy. At Bank ABC in DIFC, we are focused on arranging and advising financing deals that align with the Group’s ESG priorities and meet our clients’ unique needs. We thank Yellow Door Energy for this opportunity and wish Majid Al Futtaim a seamless transition.” 

Jeremy Crane, CEO of Yellow Door Energy, said: “Yellow Door Energy is honored to partner with Bank ABC to lead the climate finance transition for businesses in the GCC. Bank ABC’s capacity to project finance a ground-breaking facility that funds 25 sites across three countries is precedent setting. Yellow Door Energy is a trusted developer and investor for banks focused on green financing in the private sector across the Middle East and Africa. Our esteemed customer, Majid Al Futtaim, has demonstrated the importance of climate finance in their business, leading the just transition. Together with all our customers, we are unlocking green financing for leading commercial & industrial-scale businesses with significant energy needs.”

The signing of this agreement is especially important alongside COP28, where climate finance is a key theme. Effective financing strategies are indispensable to building a world that is equitable, resilient, and sustainable.

Banks are progressively focused on green financing for the private sector and for distributed generation. 

According to S&P Global Ratings, issuance of Green, Social, Sustainable and Sustainability-linked Bonds (GSSSB) is forecasted to reach between US$900 billion to US$1 trillion in 2023, an increase of 5-17%, respectively. As COP28 concludes in the UAE this month, climate finance has been recognised as a pivotal cross-cutting theme that is intertwined with Climate Transition & Adaptation.