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Qatar’s $2.5 Billion Green Bond Issuance Marks Historic Debut

Qatar’s $2.5 Billion Green Bond Issuance Marks Historic Debut

Green Bond
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Key Impact Points:

  • Qatar raises $2.5 billion with its debut green bond issuance.
  • Bonds divided into two tranches: $1 billion for 5 years and $1.5 billion for 10 years.
  • Finance Minister Ali Al-Kuwari emphasizes the issuance as a strong statement on climate change.

Qatar has successfully raised $2.5 billion through its first-ever green bond issuance, marking a significant milestone in the Gulf state’s financial landscape. The bonds are split into two tranches: a $1 billion five-year bond with 30 basis points above U.S. treasury bonds, and a $1.5 billion ten-year bond with 40 basis points above U.S. treasury bonds.

Qatar’s Finance Minister Ali Al-Kuwari highlighted the symbolic nature of the green bond issuance, stating, “We don’t expect a big size, it’s going to be very small, just as I said to make a statement and I think what’s more important than this is we need to build a vision and a strategy for climate change in the financial sector.”

The decision to issue green bonds aligns with Qatar’s broader strategy to combat climate change and support sustainable development. Al-Kuwari reiterated this commitment in a recent interview, noting that the move was “mainly to send a strong statement” regarding Qatar’s environmental efforts.

This green bond issuance is part of Qatar’s larger economic strategy, which includes the multi-billion dollar North Field Expansion project, aimed at boosting LNG production. The project will increase production capacity from 77 to 126 mtpa by 2026, solidifying Qatar’s position as a leading global LNG producer.

Related Article: Swiss Regulator Finds FIFA Made False Claims About Carbon Neutrality at Qatar World Cup

Qatar’s national Climate Change Action Plan, announced in 2021, aims to reduce greenhouse gas emissions by 25% by 2030, further demonstrating the country’s commitment to sustainability and responsible environmental stewardship.

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