Doha Bank And MUFG Launch First Green Repo Scheme In The Middle East

Doha Bank and MUFG EMEA have successfully concluded their inaugural Green Repo scheme in the Middle East and North Africa (MENA) region. This initiative represents the first instance for both institutions using green bonds as the underlying collateral.

Green Repo schemes leverage proceeds from green collateral, like green bonds, to fund additional green projects. In this case, cash generated from repurchasing green bonds issued by Qatar will be directed towards financing and acquiring green assets in line with Doha Bank's Sustainable Finance Framework.

Sheikh Abdulrahman bin Fahad Al-Thani, Group CEO of Doha Bank, expressed satisfaction with the collaboration: "We are very pleased to collaborate with MUFG to execute our first Green Repo transaction. Innovative products such as Green Repos are central to Doha Bank's ESG initiative. These funding initiatives help in raising liquidity to invest into 'Green eligible' collateral that act as a bridge in achieving our sustainability targets in line with Qatar National Vision 2030."

Andre Van Hese, International Head of Securities Financing at MUFG, highlighted their dedication: "MUFG remains committed to working with clients in the MENA region to build bespoke solutions to help navigate the importance of fostering an ESG compliant ecosystem. This transaction is a testament to our efforts and we look forward to building on this success as the region moves to execute on its ambitious sustainability strategy."

According to MUFG's analysis, Gulf Cooperation Council (GCC) economies are making significant investments towards achieving net zero targets. These efforts focus on reducing emissions in high-carbon sectors such as hydrocarbon production, power generation, and industrial manufacturing.

The GCC region is strategically positioned to benefit from its low-cost energy production capabilities, proximity to major import markets, and favourable regulatory environment. These factors collectively enhance its potential as a global leader in decarbonisation efforts.

This Green Repo scheme not only underscores the commitment of MUFG and Doha Bank towards sustainable finance but also aligns with broader regional goals. The initiative supports Qatar's vision for a sustainable future by providing necessary liquidity for green investments.

The successful execution of this transaction sets a precedent for future collaborations aimed at promoting environmental sustainability within the financial sector. It demonstrates how innovative financial products can contribute significantly towards achieving long-term ecological objectives.