The Commercial Bank has issued its inaugural Green Bond denominated in CHF (Swiss Franc). The bond is the largest ever CHF green bond issued in Qatar, the largest CHF bond issuance from Qatar since 2013, and the largest CHF green bond out of the Central and Eastern Europe, Middle East and Africa (CEEMEA) region since 2021.
The debut Green Bond issuance comes under its Sustainable Finance Framework published in 2023, with proceeds expected to go towards categories such as Sustainable Water and Wastewater Management, Green Buildings and Clean Transportation.
“Our inaugural Green Bond issuance reflects our commitment to advancing sustainable projects in Qatar. This achievement underscores our dedication to responsible financing, with a vision to drive meaningful environmental impact. The overwhelming interest from investors not only highlights their confidence in our approach but also reinforces the growing importance of green initiatives in shaping the future of global finance,” said Parvez Khan, EGM, Treasury and Investments Commercial Bank.
In a statement this week, the bank shared that the bond was initially priced with a spread of 130bps but, following “significant demand,” was tightened by 10bps to a final spread of 120bps, with the final size up tiered to CHF 225m from a range of institutional investors.
Commerzbank, Deutsche Bank, and Standard Chartered Bank acted as Joint Lead Managers for the transaction, while Standard Chartered acted as the Sole Sustainability Structurer supporting the Bank’s Treasury and Investment and ESG Team in structuring the transaction.
Sustainalytics issued a second-party opinion on the Bank’s sustainable finance framework.