Emirates NBD has issued CHF 150 million in green bonds with a five-year term and a 1.8675% yield. The move signals a shift for UAE banks seeking sustainable funding in foreign currencies.
CHF 150 million. That's the size of Emirates NBD's new green bond, issued in Swiss francs and set to mature in five years. The Dubai-based bank has joined a small group of Gulf lenders tapping the Swiss franc market for environmentally linked funding. The bonds offer a yield to maturity of 1.8675 percent. The final spread landed at 115 basis points over the Swiss Average Rate Overnight (SARON) mid-swaps. That's tighter than initial guidance, as investor demand picked up. According to the Swiss National Bank, policy rates in Switzerland remain among the lowest in the world. This keeps CHF-denominated debt attractive for global issuers.
The deal stands out for two reasons. First, it carries a green label. Second, it's denominated in Swiss francs-a rare move for a UAE bank. Most Gulf banks look to international markets for funding, but few choose the Swiss franc. This bond is a senior unsecured green note under Emirates NBD's $20 billion Euro Medium Term Note (EMTN) programme. The structure fits the bank's push for international funding and aligns with global sustainable finance trends. Data from the Bank for International Settlements shows cross-border CHF bond issuance is still small, but it's growing, especially for ESG-linked deals.
Key terms and market context
The bond matures on 13 October 2031. Settlement is set for 13 October 2026. Listing on the SIX Swiss Exchange is planned for 9 October 2026. Moody's has assigned an expected A1 rating. Fitch gives it A+. These are high-grade ratings. That helps draw investors in the Swiss franc market. BNP Paribas, UBS, and Emirates NBD Capital acted as joint lead managers and bookrunners. They brought in a wide range of international buyers. The Swiss franc market is known for its conservative investors and strict transparency rules. That matters for green bonds, which require ongoing reporting and compliance with recognized frameworks.
Market coverage shows Emirates NBD started with price thoughts at 110-115 basis points over SARON. The final price landed at the tighter end. Proceeds are expected to go to green financing, in line with the Green Bond Principles. The bank hasn't disclosed specific projects yet. The Swiss franc's stability and the Swiss National Bank's careful monetary policy make CHF bonds appealing for issuers who want diversification. Investors looking for high-quality, ESG-compliant assets also find them attractive.
Comparisons and previous activity
This isn't Emirates NBD's first move in sustainable finance. Earlier in 2026, the bank raised USD 1 billion in blue and green bonds and EUR 500 million in a green bond. That's a three-currency push for sustainable funding. It shows the bank's commitment to ESG finance and global markets. Emirates NBD has also launched high-value personal loans and savings products, including new offerings at its Egyptian subsidiary, as seen in recent activity. The Swiss franc green bond marks a clear shift toward sustainable capital markets and international investors. The 1.8675 percent yield gives a modest premium over similar sovereign and high-grade corporate bonds in Switzerland.
For investors, the high-grade ratings and green label add comfort. The Swiss franc has long been a safe-haven currency during global volatility. The Swiss National Bank's recent rate moves continue to shape CHF bond yields and cross-currency funding costs. Timing and pricing matter for international issuers. This deal shows that.
Green bonds and international funding
Green bonds are now a key tool for banks and companies that want to match funding with sustainability goals. Issuers must follow frameworks like the Green Bond Principles and report on how they use the money. Emirates NBD hasn't shared details on project allocation yet. Still, the green label is likely to attract investors with ESG mandates and those looking to diversify beyond the euro and US dollar. The International Monetary Fund (IMF) has noted that green finance is gaining ground in global capital markets. Central banks and regulators are watching the impact of sustainable debt on financial stability and capital flows.
For the Swiss franc market, a major UAE bank joining the field adds diversity. It also shows the currency's value as a funding option for global borrowers. Switzerland's low yield environment makes green bonds from credible issuers with transparent structures especially appealing to institutional investors. The Swiss franc market is smaller than the euro or US dollar markets, but it's known for strict standards and a conservative investor base. For Gulf banks, it's a strategic way to diversify funding, cut reliance on a single currency, and build ties with European investors focused on ESG.
