National Bank of Kuwait (NBK) and Mabanee Company (Mabanee), one of the region’s largest real estate developers, have signed Kuwait’s first green financing agreement for a loan of KD25 million ($81.46 million) to Mabanee.

Mabanee will utilise the loan to finance the Sabah Al-Ahmad Project (S3), an ambitious development targeting LEED Gold Certification for Building Design and Construction (LEED BD+C) from the US Green Building Council, the world’s leading authority on sustainable building standards, said a Kuwait Times report.

Reaffirming the shared commitment of NBK and Mabanee to advancing real estate projects aligned with the highest international environmental standards, this financing has been structured in accordance with the Green Loan Principles (GLP) published in 2023 by the Loan Market Association (LMA), providing a global framework to ensure that funding is channeled towards projects with a positive environmental impact.

Sulaiman K Al-Fulaij, Chief - Domestic Corporate Banking Group at NBK, said: "At NBK, we take pride in being the first institution in Kuwait to extend a green loan in line with the LMA principles. This milestone underscores our strong commitment to driving environmental transformation across diverse sectors, while further cementing our leadership in responsible banking. It also highlights our effective contribution to the pillars of Kuwait Vision 2035, particularly in fostering a sustainable living environment and advancing a sustainable diversified economy, while reinforcing the private sector’s role as a key driver of growth.”

Located in Sabah Al-Ahmad City, S3 is a landmark mixed-use development spanning 40,121 sq m, with 23,200 sq m dedicated to retail components. The project will feature a hotel, a shopping mall, retail outlets, restaurants and cafés, cinemas, a supermarket, family entertainment zones, and a multi-storey car park with capacity for over 500 vehicles. The development also integrates green spaces and landscaped parks, creating a vibrant and sustainable destination. NBK’s financing of this project reflects the Bank’s ongoing commitment to offering sustainable financing solutions that enable clients to transition towards more responsible and future-focused business models.