Mashreq And Landmark Retail Launch Qatar's First Sustainability-Linked Finance Partnership

Signing a Sustainability-Linked Facility (SLF) with Landmark Retail, conglomerate in the Middle Eastern retail, Mashreq, a leading bank the MENA region, has taken a significant forward. This agreement the first instance of a sector company in Qatar in a bilateral sustainability loan. This move not only underscores Mashreq role in spearheading sustainable finance in the Middle East but also aligns with Landmark Retail's commitment to enhancing its sustainability practices.

The collaboration is set to propelmark Retail towards achieving its sustainability goals, showcasing Mashreq's dedication to promoting sustainable finance by pledging to facilitate USD 30 billion in sustainable financing by 2030. This initiative reflects the bank's strategic focus on supporting projects that contribute to environmental stewardship and social well-being across the region.

The SLF with Landmark Retail is part of a series of Mashreq's initiatives under its Climb2Change initiative, which represents the bank's comprehensive approach to ESG efforts. This includes a commitment to sustainable finance, responsible banking products and services, and impactful social initiatives. The initiative underscores Mashreq's position as a leader in sustainable banking, not only in the MENA region but globally.

This collaboration follows Mashreq's recent leadership in the $3.25 billion debut Leverage Buyout sustainability-linked financing for GEMS Education, representing the largest sustainability-linked financing in the region until July 2024. This further illustrates Mashreq's active role in facilitating significant sustainable finance transactions.

The agreement incorporates key performance indicators that emphasize the adoption of renewable energy, the implementation of energy management solutions for efficiency, and the promotion of responsible sourcing. Landmark Retail aims to diminish its environmental footprint through waste reduction, recycling, and expanding the use of Better Cotton in its products. This approach signifies a broader effort to integrate sustainable practices across its operations, contributing to the global sustainability agenda.

Tarek El Nahas, Mashreq's Group Head of International Banking, highlighted the significance of the partnership, stating, "This collaboration is a testament to Mashreq's leadership in mobilizing sustainable finance across the region, particularly in Qatar. As a bank, we understand that our greatest impact comes from directing capital flows responsibly and offering clients solutions that extend beyond traditional financing." This statement underscores the bank's commitment to driving sustainable finance and fostering a positive environmental impact.

Salman Gulzar, Country Head of Mashreq Qatar, echoed this sentiment, emphasizing the role of the partnership in advancing Qatar's sustainability vision and reinforcing the bank's leadership in sustainable finance. He noted the importance of facilitating financing solutions tailored to clients’ sustainability goals, reflecting the bank's dedication to responsible banking and achieving strong performance across Environmental, Social, and Governance (ESG) metrics.

Rajesh Garg, Group Chief Financial Officer of Landmark Retail, expressed the company's commitment to responsible business conduct and its aim to incorporate circular initiatives across its operations. He remarked, "Through our partnership with Mashreq, we aim to embed improved circular initiatives across our operations through renewable energy, circularity and responsible sourcing." This partnership marks a critical milestone in Qatar's sustainability journey and ambitions, showcasing a collective effort towards environmental responsibility.

The strategic partnership between Mashreq and Landmark Retail exemplifies the growing emphasis on sustainable finance in the MENA region. It highlights the critical role of financial institutions in supporting their clients' sustainability objectives, reinforcing the importance of joint efforts in achieving global sustainability goals.