Standard Chartered Bank, Siemens Energy Issue Qatar's First Green Guarantee for Solar Power Project
Date
3/29/2023 1:56:30 AM
(MENAFN) Standard Chartered bank and Siemens energy have issued Qatar's first Green Guarantee for a solar power project that plays a significant role in the country's national climate change action strategy. The Green Guarantee initiative is designed to increase sustainable and responsible banking practice in the country, aiding in the project's completion and long-term sustainability. Green guarantees are powerful de-risking mechanisms that accelerate the flow of private financing into climate mitigation and adaptation projects in developing nations.
The collaboration between Standard Chartered Bank, Qatar, and Siemens Energy sets a new benchmark for sustainable finance in Qatar, promoting responsible and sustainable finance practices. The Green Guarantee initiative is a trading instrument that supports the development of an important solar power project in Qatar, highlighting the need for partnership, innovation, and decarbonization in the road to net-zero.
The Green Guarantee for the solar power project is projected to play a vital role in Qatar's national climate change action strategy, reducing its carbon footprint while enhancing its energy independence. The announcement is the latest move by countries in the region to push ahead with sustainable investments. In February, Saudi Arabia's Ministry of Industry and Mineral Resources signed a memorandum of understanding with Standard Chartered Bank to evaluate the requirements for sustainable investment in the mining sector in the Kingdom, in line with its Vision 2030 objectives.
The MoU focuses on promoting knowledge transfer, technological enablement, job creation, and executing the outcomes of the Future Minerals Forum. It encourages local and foreign businesses to discover investment potential in Saudi Arabia's mining and mineral sectors. Saudi Arabia's Public Investment Fund announced in February that it has raised USD5.5 billion through its second green bond sale, following the PIF's initial green bond issuance amounting to USD3 billion in October 2022. The money will fund sustainable investments by the sovereign wealth fund through its Green Finance Framework.
The first offering was more than eight times oversubscribed, with a subscription request totaling USD25.9 billion. The most recent bond issuance was more than six times oversubscribed, with books surpassing USD33 billion, and it was offered in three tranches - USD1.75 billion for 7 years, USD2 billion for 12 years, and USD1.75 billion for 30 years. The Green Guarantee initiative by Standard Chartered Bank and Siemens Energy creates an entirely new benchmark for sustainable finance in Qatar, serving as a model for companies and institutions interested in promoting responsible and sustainable finance practices.
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