MUFG EMEA and Doha Bank have successfully closed their inaugural Green Repo scheme in the Middle East and North Africa (MENA) region. This milestone marks the first Green Repo initiative for both institutions, utilizing green bonds as the underlying collateral.
Green Repo schemes leverage proceeds from green collateral, such as green bonds, to finance additional green projects. For this transaction, the cash generated from repurchasing green bonds issued by the State of Qatar will be allocated to funding and purchasing green assets aligned with Doha Bank’s Sustainable Finance Framework.
Sheikh Abdulrahman bin Fahad Al-Thani, Group CEO of Doha Bank, expressed enthusiasm about the collaboration: “We are very pleased to partner with MUFG on this pioneering Green Repo transaction. Innovative products like Green Repos are central to Doha Bank’s ESG initiatives, aiding in raising liquidity to invest in ‘Green eligible’ collateral and bridging our sustainability targets in alignment with Qatar National Vision 2030.”
Andre Van Hese, International Head of Securities Financing at MUFG, commented on the importance of the transaction: “MUFG remains dedicated to partnering with clients in the MENA region to develop tailored solutions that foster an ESG-compliant ecosystem. This transaction reflects our commitment, and we look forward to building on this success as the region advances its ambitious sustainability goals.”
According to MUFG’s analysis, regulators and policymakers in the Gulf Cooperation Council (GCC) economies are making significant investments to achieve net-zero targets. These efforts are focused on decarbonizing high-emission sectors, including hydrocarbon production, power generation, and industrial production. The GCC region is strategically positioned to leverage its low-cost energy advantages, proximity to major import markets, and supportive regulatory environment to emerge as a global leader in decarbonization.
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