Tuesday, January 19, 2021

QNB first in Qatar to issue $600 million green bond

  • Sep 15, 2020
  • Author: satyendra
  • Number of views: 1316
  • Top News

Tribune News Network


QNB Group, the largest financial institution in the Middle East and Africa, on Tuesday announced the successful completion of its first green benchmark bond issuance.  This is the first-ever green bond issued by a Qatari bank, the bank said.

Under the MTN Programme, $600 million tranche in the form of Senior Unsecured Notes was issued with a maturity of five years and listed on the London Stock Exchange under Sustainable Bond Market segment. The proceeds from this green bond issuance will be used to finance or refinance assets in verified Eligible Green Projects.

The QNB Group received subscriptions in excess of $1.8 billion demonstrating the global investor’s confidence in the bank’s solid financial fundamentals and strong financial performance.

The issuance was part of QNB Group’s ongoing strategy to ensure diversification of funding in terms of type, tenor and geography as an example of commitment to ESG principles.

In 2017, QNB Group launched a group-wide sustainability strategy across the organisation. The strategy has been developed in alignment with the objectives of the Qatar National Vision 2030 (QNV2030), United Nations Sustainable Development Goals (UNSDG) and the sustainability criteria guidance as set forth by the Qatar Stock Exchange (QSE).

Building on this initiative, QNB Group set up its Green, Social and Sustainability Bond Framework in February 2020 and has been in regular contact with several ESG investors over the last number of months.

In particular, QNB Group’s current green assets portfolio currently consists of green buildings, energy efficiency projects and sustainable water and wastewater management in Qatar and international jurisdictions where QNB Group is present.

The Reg S issue attracted strong interest from investors globally and was arranged by Barclays as global coordinator and joint lead manager, ING as sole sustainability structuring advisor and joint lead manager, and Crédit Agricole, HSBC, QNB Capital and Standard Chartered Bank as joint lead managers.

QNB Group’s presence through its subsidiaries and associate companies extend to more than 31 countries across three continents, providing a comprehensive range of advanced products and services. The total number of employees is more than 29,000 operating through 1,000 locations, with an ATM network of more than 4,200 machines.