Five Holdings makes Nasdaq debut with 3$50 million green bond

05 October 2023 2 min. read

UAE-based hospitality company Five Holdings has made its debut on the Nasdaq Dubai, listing a $350 million green bond on the exchange.

Founded in 2011, Five Holdings is a real estate development and hospitality group best known as the owner and operator of the iconic Five Palm Jumeirah and Five Jumeirah Village resorts in Dubai. The group has several other hotels and resorts within its portfolio, all focused on high-end and luxurious lifestyle experiences.

The company’s new US dollar-denominated green bond marks Five’s debut on the international financial exchange, and underscores its dedication to sustainable finance.

Five Holdings makes Nasdaq debut with 3$50 million green bond

Company Chairman and Founder, Kabir Mulchandani, said: “At Five Holdings, we understand that value creation for stakeholders is essential to sustainable development, which drives our commitment to outstanding EBITDA figures and environmental responsiveness. This green bond launch forms the bedrock of our ‘Sustainable Indulgence’; a legacy of financial strength married with our strategic focus on environment, society and corporate governance.”

Launched with a coupon rate of 9.375% and a maturity set for 2028, the listing grows Nasdaq Dubai’s total value of ESG classified bonds and sukuk listings to $26.7 billion.

“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,” said Hamed Ali, CEO of Nasdaq Dubai.

IPO dealmakers

The IPO listing process was advised on by advisors from multiple corners of the professional services landscape.

Advisors from Citi, Deutsche Bank and Emirates NBD Capital were appointed as global coordinators, while Citi, Commercial Bank of Dubai, Deutsche Bank, Emirates NBD Capital and Mashreq acted as joint bookrunners and joint lead managers. Citi also served as the sole structuring bank for the issuance.

Real estate consultancy CBRE acted as hospitality valuation advisors to Five Holding, providing insight in the operations, profitability, and outlook of the hospitality portfolio.

“We are delighted to have supported Five Holdings on its listing of the largest hospitality-based green bond in the region. This demonstrates the appetite of investors for exposure to sustainable products secured against established hospitality cash flows and their underlying assets,” said Daniel McCulloch, Head of Valuation at CBRE.