QInvest LLC (QInvest), Qatar's leading investment group and one of the world’s most prominent Islamic financial institutions announced the successful close of a $275 million sustainability linked facility (SLF), in the first transaction of its kind in Qatar for a financial institution, and one of the first by an Islamic investment bank, globally. The syndicated sustainability linked commodity Murabaha facility was oversubscribed and upsized. The transaction included international, regional and local institutions such as HSBC, Al Rajhi Bank Kuwait, Al Rajhi Bank Malaysia, Abu Dhabi Commercial Bank, Dukhan Bank, Al Rayan Bank and Doha Bank. The agreement for the facility follows a programme of work by QInvest to develop an environmental, social and governance (ESG) framework and to establish emission targets and an ESG assessment methodology. Key performance indicators (KPIs) included in the facility’s structure align with the objectives of Net Zero Asset Managers Initiative (NZAMI) on environmental principles, and UN Principles for Responsible Investment (UNPRI) on governance, with annual milestones that QInvest needs to achieve. The agreement follows activity which further demonstrates QInvest’s position as a regional innovator and leader, especially in Sharia’a compliant financial solutions. This includes its role as joint lead managers and bookrunners in Dukhan Bank’s $800 million five-year senior unsecured sukuk in 2024, the first senior sukuk issuance for Dukhan Bank, which saw high demand from both global and regional investors. QInvest’s agreement of the sustainability-linked facility is part of a series of transactions in Qatar – such as Qatar Islamic Bank’s $5 billion sukuk issuance, $750 million of which was led by QInvest. This demonstrates the evolution of Qatar’s financial markets on the international stage. Sharia’a compliant finance is also gaining prominence in new geographies. To date, over $50 billion has been raised through 68 sukuk issuances on the London Stock Exchange alone. The facility’s agreement and conditions substantiate QInvest’s strong commitment, as a leading Islamic bank and leading regional financial institution, to following the highest standards of ESG commitment. This is in line with the State of Qatar’s energy transition plans and Qatar Vision 2030, the national economic and social plan focused on sustainable development. Hussein Fakhreddine, acting CEO of QInvest said, “As a leading Islamic financial institution, QInvest is proud to be leading the way on this unique transaction, and one of the first of its kind for an Islamic investment bank. As Sharia’a compliant finance takes its place on the global stage, we are honoured to show our clients, partners and stakeholders all over the world that Qatar is a leading destination for truly sustainable finance and development, with progress closely tied to financial and economic goals. As asset owners and managers, companies like QInvest have a particular duty to the environment, society and shareholders. The sustainability-linked facility demonstrates that, as an organisation, we are willing to be held truly accountable for our commitment and progress on ESG.” Aadil Nastar, head of global markets and treasury at QInvest said, “As a pioneering Islamic investment bank, we're proud to have structured Qatar’s first sustainability-linked unsecured facility for a financial institution, uniquely tied to robust ESG KPIs within an established sustainability framework. This landmark transaction directly supports Qatar’s National Vision 2030 and its ambitious climate and sustainability objectives, setting a tangible benchmark for meaningful climate action within our financial sector. We firmly believe clear, measurable sustainability KPIs are critical for addressing urgent environmental challenges, and we encourage further adoption of such innovative financial solutions to drive sustainable growth forward.” HSBC acted as sole coordinator, bookrunner, sustainability coordinator and investment agent for the SLF. Re-disseminated by The Asian Banker
