MUFG EMEA and Doha Bank close first green repo in Middle East
12 September 2024 Qatar
Image: Vanessa/stock.adobe.com
MUFG EMEA and Qatar-based Doha Bank have closed their first green repurchase scheme in the Middle East and North Africa (MENA) region.
This transaction marks the first green repo scheme for both institutions that utilises green bonds as the underlying collateral.
Green repo schemes use the proceeds of green collateral, such as green bonds, to finance further green initiatives.
In line with its Sustainable Finance Framework, Doha Bank will commit the cash proceeds generated from the repurchase of green bonds issued by the State of Qatar to the funding of green assets.
Sheikh Abdulrahman bin Fahad Al-Thani, group CEO at Doha Bank, says: “Innovative products such as green repos are central to Doha Bank's ESG initiative.
“These funding initiatives help in raising liquidity to invest into 'green eligible' collateral that acts as a bridge in achieving our sustainability targets in line with Qatar National Vision 2030".
Andre Van Hese, international head of securities financing at MUFG, adds: “MUFG remains committed to working with clients in the MENA region to build bespoke solutions to help navigate the importance of fostering an ESG-compliant ecosystem.”
According to MUFG’s analysis, regulators and policymakers in the Gulf Cooperation Council (GCC) economies are undertaking extensive investments to progress a net zero target across the region.
Looking ahead, the GCC region remains well-positioned to become a vital global decarbonisation leader, MUFG says.
This transaction marks the first green repo scheme for both institutions that utilises green bonds as the underlying collateral.
Green repo schemes use the proceeds of green collateral, such as green bonds, to finance further green initiatives.
In line with its Sustainable Finance Framework, Doha Bank will commit the cash proceeds generated from the repurchase of green bonds issued by the State of Qatar to the funding of green assets.
Sheikh Abdulrahman bin Fahad Al-Thani, group CEO at Doha Bank, says: “Innovative products such as green repos are central to Doha Bank's ESG initiative.
“These funding initiatives help in raising liquidity to invest into 'green eligible' collateral that acts as a bridge in achieving our sustainability targets in line with Qatar National Vision 2030".
Andre Van Hese, international head of securities financing at MUFG, adds: “MUFG remains committed to working with clients in the MENA region to build bespoke solutions to help navigate the importance of fostering an ESG-compliant ecosystem.”
According to MUFG’s analysis, regulators and policymakers in the Gulf Cooperation Council (GCC) economies are undertaking extensive investments to progress a net zero target across the region.
Looking ahead, the GCC region remains well-positioned to become a vital global decarbonisation leader, MUFG says.
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