Standard Chartered, a British multinational banking and financial services company has successfully completed its first Environmental, Social, and Governance (ESG) ‘Use of Proceeds’ repurchase agreement transaction (Repo) with the Saudi National Bank (SNB).
The $250 million transaction is the first of its kind in the Middle East, North Africa and Pakistan (MENAP) region, and amongst the first few globally where the Repo financing proceeds were allocated towards ESG assets.
Standard Chartered is known for its ambitious goals to reach net-zero carbon emissions through sustainable finance solutions, and it continues to develop new and innovative products to help customers achieve their sustainability objectives. SNB, the largest financial institution in the Kingdom, will be allocating the proceeds of the financing towards several large renewable energy projects and green initiatives in Saudi Arabia and the wider GCC region.
Yazaid Al Salloom CEO Standard Chartered Bank Saudi Arabia
“Standard Chartered played a key role in driving sustainability-led initiatives in the region as part of our ambitious pathway to net-zero by 2050. This unique ESG ‘Use of Proceeds’ Repo is a testament to our ability to innovate and our ESG structuring capabilities. We are proud to be partnering with a leading national institution such as Saudi National Bank on this successful transaction which further reinforces our commitment to the Kingdom’s green goals.”
The deal follows Saudi Arabia’s recent pledge to cut its carbon emissions to net-zero by 2060 and to join the Global Methane Pledge, working to lower global methane emissions by 2030. Both banks have shown a remarkable commitment to sustainable finance to support green growth in markets they operate in.
Furthermore, the structure is also part of a growing sustainable finance product suite that allows banks to connect their lending portfolios with ESG goals and act as a catalyst for the transition to a greener economy.
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