FIVE Holdings Lists $350 Million Green Bond on Nasdaq Dubai

FIVE Holdings, a prominent luxury hospitality and development company based in Dubai, has made its debut listing of its $350 million Green Bond on Nasdaq Dubai on Wednesday. This listing marks a significant moment for FIVE, making it their first appearance on the region’s esteemed international financial exchange.

Nasdaq Dubai continues to lead in creating an ecosystem that supports sustainable finance. The listing of FIVE Holdings Green Bond enhances Nasdaq Dubai’s total value of ESG classified bonds and sukuk listings, reaching $26.7 billion, and contributes to a total value of debt listed on the exchange totalling $118.34 billion.

The issued Green Bond, featuring a coupon rate of 9.375%, amounts to $350 million, with maturity set for 2028. This listing underlines FIVE’s steadfast commitment to sustainable finance and its consistent leadership in Environmental, Social, and Governance (ESG) practices.

With a growing emphasis on responsible business practices globally, FIVE Holding serves as a flagship example of the region’s dedication to fostering sustainable business models. Nasdaq Dubai, as a key financial platform in the UAE, plays a pivotal role in attracting listings that align with ESG values.

Kabir Mulchandani, Chairman and Founder of FIVE Holdings, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), rang the market opening bell at Nasdaq Dubai. They were accompanied by other members of the FIVE group’s senior leadership to mark the company’s first issuance on the region’s international financial exchange solidifying the group’s remarkable achievements.

Kabir Mulchandani said that 2022 was an unprecedented year of success for the company, which was driven by the acceleration of their growth strategies which achieved a robust EBITDA margin (42%) and secured world-class sustainability milestones (‘A’ rating for ESG by ISS).

“FIVE understands that value creation for stakeholders is essential to sustainable development, which drives our commitment to outstanding EBITDA figures and environmental responsiveness. This forms the bedrock of FIVE’s ‘Sustainable Indulgence’; a legacy of financial strength married with our strategic focus on environment, society, and robust corporate governance,” Mulchandani added.

Hamed Ali said that Five Holdings’ commitment to sustainable practices aligns seamlessly with our mission to foster responsible and impactful investment opportunities.

“FIVE’s debut Green Bond listing underscores Nasdaq Dubai’s position as a leading exchange for sustainable finance in the region. We are excited to provide a platform for companies that share our dedication to environmental, social, and governance excellence,” he added.

Five Holdings Limited has selected Citi, Deutsche Bank and Emirates NBD Capital as joint global coordinators, while Citi, Commercial Bank of Dubai, Deutsche Bank, Emirates NBD Capital and Mashreq will act as joint bookrunners and joint lead managers.

‘A’ Rating for ESG

FIVE is the world’s only company to receive an ‘A’ rating for ESG within the ISS Corporate Rating universe. The company’s Green Finance Framework, validated by an ISS Second Party Opinion, received “Aligned,” “Consistent,” and “Positive” remarks.

Remarkably, FIVE’s Dubai hotels are the first in the UAE to receive International Renewable Energy Certificates (I-REC), ensuring 100% renewable electricity and aligning seamlessly with the UAE’s ‘Year of Sustainability.’ FIVE’s governance practices, evaluated as part of its world-leading ESG rating, achieved ‘A+’ for Code of Business Ethics and ‘A+’ for Compliance Procedures—the highest marks possible.