Standard Chartered executes $250mn ESG-linked repo with Saudi bank

Standard Chartered Bank announced the successful execution of its first ESG ‘Use of Proceeds’ repurchase agreement transaction (Repo) globally with the Saudi National Bank. The $250 million transaction is the first 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.

The Saudi National Bank, 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 wider GCC region. The structure is part of a sustainable finance product suite which enables banks to align their lending portfolios with ESG goals and act as a catalyst in the transformation to a greener economy.

Yazaid Al Salloom, CEO of Standard Chartered Bank Saudi Arabia, said in a statement: “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 of our ability to innovate and our ESG structuring capabilities.”

Saudi Arabia has pledged 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. Standard Chartered’s sustainability strategy includes targets to reach net-zero carbon emissions from its financed activity by 2050, including interim 2030 targets for the most carbon-intensive sectors.

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