Standard Chartered executes ESG ‘use of proceeds’ repo with Saudi National Bank
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Standard Chartered executes ESG ‘use of proceeds’ repo with Saudi National Bank 17 November 2021Saudi Arabia Reporter: Bob Currie
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Standard Chartered has executed an ESG ‘use of proceeds” repo transaction globally with the Saudi National Bank.
It reports that the US$250 million trade is the first to be conducted in the Middle East, North Africa and Pakistan region and one of the first worldwide where proceeds of a repurchase agreement transaction have been allocated towards ESG assets.
The Saudi National Bank indicates that it will be allocating the proceeds of this transaction towards several large renewable energy projects and green initiatives in Saudi Arabia and the wider Gulf Cooperation Council (GCC) region.
Saudi Arabia has issued a recent pledge to reduce carbon emissions to net zero by 2060 and to join the Global Methane Pledge, which aims to cut methane emissions by 30 per cent by 2030.
Yazaid Al Salloom, CEO of Standard Chartered Bank Saudi Arabia, says: “Standard Chartered played a key role in driving sustainability-led initiatives in the region as part of our ambitious pathway to net zero by 2050. This unique ESG ‘Use of Proceeds’ repo is a testament of our ability to innovate and our ESG structuring capabilities.
“We are proud to be partnering with a leading national institution such as Saudi National Bank on this successful transaction which further reinforces our commitment to the Kingdom’s green goals.”
Standard Chartered has recently announced new targets to reach net-zero carbon emissions from its financed activity by 2050, including interim 2030 targets for the most carbon-intensive sectors. The Group’s approach aims to align with the International Energy Agency’s Net Zero Emissions by 2050 scenario.
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