Skip to main content

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.
A picture taken on Sept. 3, 2019, shows freshly painted blue roads in Doha, an experiment to cool the tarmac surface and reduce the temperature of surrounding areas.

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.

HSBC's head of markets for the Middle East said the instrument will help make more cash available for investments in green technology. 

“Launching a new green product is an important development for the bank and our clients, and further increases liquidity for the institutional green finance market,” said Antoine Maurel in a press release sent to Al-Monitor. 

The green assets must meet the criteria of HSBC's green bonds framework, per the press release. This framework mandates that businesses or projects maintain sustainable practices in their core operations, among other things. 

Qatar National Bank’s ownership is evenly split between the state of Qatar’s sovereign wealth fund, the Qatar Investment Authority, and members of the public who can purchase stock in the company. The most recent available stock price for Qatar National Bank was $38.50 a share on Feb. 10. 

Qatar is one of the biggest suppliers of liquified natural gas in the world and is a member of the Organization of the Petroleum Exporting Countries, or OPEC. Like other Gulf states, Qatar has started to explore renewable energy sources in recent years such as solar energy. 

Join hundreds of Middle East professionals with Al-Monitor PRO.

Business and policy professionals use PRO to monitor the regional economy and improve their reports, memos and presentations. Try it for free and cancel anytime.

Free

The Middle East's Best Newsletters

Join over 50,000 readers who access our journalists dedicated newsletters, covering the top political, security, business and tech issues across the region each week.
Delivered straight to your inbox.

Free

What's included:
Our Expertise

Free newsletters available:

  • The Takeaway & Week in Review
  • Middle East Minute (AM)
  • Daily Briefing (PM)
  • Business & Tech Briefing
  • Security Briefing
  • Gulf Briefing
  • Israel Briefing
  • Palestine Briefing
  • Turkey Briefing
  • Iraq Briefing
Expert

Premium Membership

Join the Middle East's most notable experts for premium memos, trend reports, live video Q&A, and intimate in-person events, each detailing exclusive insights on business and geopolitical trends shaping the region.

$25.00 / month
billed annually

Become Member Start with 1-week free trial

We also offer team plans. Please send an email to pro.support@al-monitor.com and we'll onboard your team.

What's included:
Our Expertise AI-driven

Memos - premium analytical writing: actionable insights on markets and geopolitics.

Live Video Q&A - Hear from our top journalists and regional experts.

Special Events - Intimate in-person events with business & political VIPs.

Trend Reports - Deep dive analysis on market updates.

All premium Industry Newsletters - Monitor the Middle East's most important industries. Prioritize your target industries for weekly review:

  • Capital Markets & Private Equity
  • Venture Capital & Startups
  • Green Energy
  • Supply Chain
  • Sustainable Development
  • Leading Edge Technology
  • Oil & Gas
  • Real Estate & Construction
  • Banking

Already a Member? Sign in

Start your PRO membership today.

Join the Middle East's top business and policy professionals to access exclusive PRO insights today.

Join Al-Monitor PRO Start with 1-week free trial