UAE’s e& secures Dhs366m loan for green projects

Emirates Telecommunications Group (e& Group) has secured a sustainable loan of $100m (Dhs366m) as part of the telecoms giant’s measures to finance sustainable projects that have a positive, real-time impact on communities.

The sustainable loan will be used to finance or refinance eligible sustainable development projects covering a range of areas, particularly renewable energy, clean transport and energy efficiency.

e& said it will also facilitate future funding of additional projects with a focus on sustainable development, including sustainable water supply, waste management, green buildings and pollution prevention.

The company’s sustainable finance framework supports environmental, social and governance (ESG) strategy. It aims to catalyse change by issuing a range of sustainable finance instruments, including green, social and sustainability bonds/loans.

“Following e& Group’s ambitious climate commitments at COP28 to achieve net zero carbon emissions by 2040 in our operations across all markets, the signing of our first green loan is a landmark moment for the company,” said Hatem Dowidar, group CEO.

“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& said its finance framework goes beyond being a mere financial instrument by creating a strategic method for cultivating a sustainable future. It reflects the group’s commitment to the UAE’s vision and worldwide endeavours to combat climate change.

Earlier in December, the company announced plans to achieve net-zero carbon emissions across its operations in all markets by 2040.  It unveiled near-term targets of a group-wide reduction of 43 per cent from its activities and the energy it purchases and uses (Scope 1 and 2 emissions) by 2030.

e& also pledged a 25 per cent reduction of Scope 3 emissions including its supply chain and investments.

e&’s growth strategy

Meanwhile, e& reported a 20 per cent year-on-year (YoY) increase in Q3 2023 net profit to Dhs3bn compared to Dhs2.5bn a year earlier, driven by growth in revenue and an increase in subscriber base.

The group’s revenues in the three months to September 30 reached Dhs13.4bn, a 3 per cent YoY increase compared to the same period last year while the company’s subscriber base reached 167 million during the period under review, representing a YoY increase of 3 per cent in Q3 2023.

The telecoms giant said revenues from its UAE operations surged by 5.8 per cent YoY to Dhs8.2bn, driven by the ongoing growth in business activity in the country supported by population growth and robust overall economic growth.

e&’s mobile division posted a 2.6 per cent increase in revenue to Dhs2.9bn, driven by the increase in subscribers and growth in outbound roaming services.

Read: UAE’s e& eyes further expansion, acquires Czech PPF Group’s telecom assets