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Qatar likely to sell 1st green bond shortly

Qatar likely to sell 1st green bond shortly
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Mubasher: Qatar is ready to sell its first green bond in the near future, Bloomberg cited the state Minister of Finance, Ali Al Kuwari, at the World Economic Forum in Davos.

Al Kuwari stated: “We’re ready to do it very soon,” elaborating that “We are not hungry for money but it will be mainly to send a strong statement” about the need to counter climate change.

The Qatari minister further noted that the country also plans to sell the first external deal of any kind in four years.

Being one of the world’s biggest producers of liquefied natural gas (LNG), Qatar has not issued Eurobonds since early 2020 when it sold $10 billion of five-, 10-, and 30-year debt back then.

The GCC member state recently finalised a green-finance framework that facilitates the requirements for issuing green bonds. This fund projects dedicated to eliminating carbon and other planet-warming emissions.

According to Bloomberg indexes, Qatar’s USD-denominated bonds yield 4.92% on average, one of the lowest levels in emerging markets.

Countries across the region work on issuing green bonds, as Egypt planned its first-time sustainability bonds worth $500 million to be issued the first half (H1) of 2023.

Meanwhile, in a bid to support UAE’s transition to a net zero economy, Abu Dhabi Commercial Bank (ADCB) priced $650 million green bonds in September 2023 to finance eligible green assets.