Qatar is making a significant return to the international bond market after a four-year hiatus, introducing its first-ever green bond initiative as the country aims to align one of the world’s leading liquefied natural gas (LNG) sectors with global sustainability goals.
The Qatari government is issuing green bonds that are due in five and ten years. The initial pricing over U.S. Treasuries is set at 70 basis points for the shorter-term bonds and 80 basis points for the longer-term ones. Details concerning the pricing and the volume of the bonds are expected to be finalized and disclosed by the end of Tuesday.
The issuance of green bonds has been gaining momentum across the Middle East, with notable placements from Saudi Arabia’s sovereign wealth fund, Abu Dhabi’s leading real estate firm, and the government of Sharjah, reflecting a growing regional commitment to environmentally sustainable investments. Despite not having a defined timetable for achieving net-zero emissions, Qatar, known for its high per capita greenhouse gas emissions, is channeling substantial investments into expanding its solar energy capabilities. The nation contends that natural gas, despite concerns about methane emissions, plays a crucial role in aiding global climate objectives due to its lower pollution levels compared to oil and coal.
Qatar, classified among the wealthiest nations globally, maintains a robust AA rating from all three leading credit rating agencies, reflecting strong economic fundamentals.
The last time Qatar accessed the Eurobond market was in April 2020 when it raised $10 billion, buoyed by an impressive $45 billion in orders from global investors.
The issuance is being orchestrated by top financial institutions including Crédit Agricole AS, HSBC Holdings Plc, JPMorgan Chase & Co., and Qatar National Bank, signaling strong backing and confidence in Qatar’s financial health and its appeal to eco-conscious investors.
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