Qatar National Bank launches environmentally friendly finance project
The Doha-based bank will loan cash to the British bank HSBC to be used for green transportation investments.
Qatar National Bank and the London-based bank HSBC have launched a green energy-focused financing instrument.
Under the agreement, Qatar National Bank will loan cash to HSBC. Qatar National Bank will in turn receive green bonds, which are debt instruments designated to raise money for environmental projects. HSBC will then allocate an amount equal to the bond purchase price to climate and environmentally friendly businesses and projects that promote a low use of carbon, with a focus on “clean transportation,” the official Qatar News Agency reported.
A Qatar National Bank spokeswoman confirmed the agreement with HSBC to Al-Monitor.
Financial agreements that stipulate the sale of bonds for cash are referred to as repurchase or repo agreements. Entities often use them to raise cash.
