Qatar’s Masraf Al Rayan brings out sustainable financing framework

By Shilpa Annie Joseph, Official Reporter
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Masraf Al Rayan-Karty Partnership
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Qatar-based leading Islamic bank Masraf Al Rayan has become the first Islamic bank in the country to launch a sustainable financing framework in order to support its environment, social, and governance (ESG) agenda.

According to the statement, the launch of the framework will enable the bank to offer ESG-linked funding opportunities to investors and apply those proceeds to finance ESG-compliant sustainable projects.

Under the new sustainable financing framework, Masraf Al Rayan has committed to allocating an amount equivalent to the net proceeds of financing instruments issued under the framework to exclusively finance or refinance projects that contribute to at least one environmental or social objective.

“All eligible green and social projects will contribute to environmental and social objectives, in line with Qatar National Vision 2030, and are mapped to specific targets of the United Nations’ Sustainable Development Goals,” as per the statement.

Fahad bin Abdullah Al Khalifa
Fahad bin Abdullah Al Khalifa
Group CEO
Masraf Al Rayan

“With the launch of the National Environment and Climate Change Strategy in 2021, which provides a robust policy framework to safeguard Qatar’s environment for future generations, Masraf Al Rayan has been committed to addressing our national environmental priorities. In particular, we want to increase the necessary financing to various economic sectors that will help Qatar achieve its ESG goals. We are the first Islamic Bank in Qatar to have formally launched a Sustainable Finance Framework, assessed by S&P Global Ratings. This step will open new avenues for participation amongst investors and customers to collectively achieve our sustainable investment and financing goals.”

According to the statement, a dedicated ESG Governance Committee has been set up to monitor the implementation of the Sustainable Finance Framework and to develop ongoing ESG-related frameworks and policies.

The bank’s Sustainable Financing Framework is fully aligned with the Green Bond Principles supporting the financing of environmentally sound and sustainable projects that foster a net-zero emissions economy and protect the environment.

HSBC Qatar CEO Mr. Abdul Hakeem Mostafawi said that, “HSBC is committed to helping lead the transition to a global net-zero economy. The financial services sector in Qatar has an important role to play in the country’s target of reducing greenhouse gas emissions by 25 percent by 2030 and HSBC is proud to have collaborated with Masraf Al Rayan on developing their Sustainable Finance framework.”

Related: Masraf Al Rayan unveils Qatar’s 1st Sharia-compliant ‘Green Deposit’