Qatar's Ministry of Finance has raised two and a half billion US dollars through the issuance of its first sovereign green bonds, the first from a GCC government. The transaction has been structured in two tranches — a one billion dollar five-year note priced at 30 basis points over US Treasuries and a one and a half billion dollar ten-year note priced at 40 basis points over the same benchmark.
USE OF PROCEEDS
The Ministry of Finance stated that proceeds from the issuance would be allocated to eligible projects spanning renewable energy development, energy efficiency improvements, and water management initiatives, among the eligible categories set out in the green financing framework that Qatar established ahead of the transaction. Allocations will be governed by that framework.
QATAR'S TARGET OF $75 BILLION IN SUSTAINABLE INVESTMENT BY 2030
The inaugural sovereign green bond sits within Qatar's larger stated ambition of attracting up to 75 billion US dollars in sustainable investments by the end of the decade.