AlRayan Bank and HSBC completed the first Islamic ESG KPI Linked repurchase agreement (repo), a sustainable finance deal in support of Al Rayan Bank’s transition journey.
The structure includes Sustainable Performance Targets that AlRayan Bank needs to reach within the next three years.
The bank launched its Sustainable Finance Framework in 2022 to support the broader commitments of the country’s net zero transition journey, Qatar National Vision 2030 and the recently launched Sustainability Strategy from the Qatar Central Bank.
“We are fully committed to delivering on the Sustainable Performance Targets as part of our ESG strategy that also indicates the progress that the bank is making on its transition journey”, said Fahad bin Abdulla Al Khalifa, Group CEO AlRayan Bank. “We are grateful for the support and cooperation from HSBC as a key partner supporting us in delivering on the country’s ESG agenda.”
AlRayan Bank offers a number of environmental, social and governance products (ESG), including green deposits and financing for electric vehicles.
“Transactions like the first Islamic ESG KPI-linked repo demonstrate the importance and focus HSBC places in helping our clients achieve their ambitions in their net zero journey in Qatar. This landmark transaction further builds on the close collaboration we have with AlRayan Bank in partnering with them on their transition journey’’, said Abdul Hakeem Mostafawi, CEO of HSBC in Qatar.
The Qatari lender collaborated with key partners to develop an outline for activities and projects as part of its broader strategy to reach sustainable performance targets for ESG aspects.
With around QAR 165 billion in assets under management, AlRayan Bank set a benchmark in sustainable Islamic financing by launching Qatar’s first green deposit and the inaugural program for sustainable Islamic finance.
