Crédit Agricole CIB acts as Global Coordinator and Joint Green Coordinator on State of Qatar’s inaugural green bond

This marks the first ever green issuance by a Sovereign issuer from the Gulf Cooperation Council (GCC) region, and represents the largest ever Green offering by a Sovereign issuer from the Central and Eastern Europe Middle East and Africa (CEEMA) region.

Crédit Agricole CIB acted as Global Coordinator and Joint Green Coordinator on State of Qatar’s inaugural green bond. 

The transaction comprised two tranches: 

• a USD 1.0 billion 5-year Green bond which priced at UST +30bps (all in yield of 4.739%) 
• a USD 1.5 billion 10-year Green bond which priced at UST +40bps (all in yield of 4.818%). 

The aggregate orderbook attracted over USD 14 billion of high-quality orders, allowing Qatar to price its issuance at the lowest ever pricing spread levels on a public offering from the CEEMEA region for both respective tenors. The final pricing reflected a 40bps tightening in pricing as compared to the initial price levels communicated as the books opened. 

Despite sizable price revisions and the final tight pricing levels, the strong demand from investors allowed the State to upsize the transaction to a total of USD 2.5 billion, which is the largest ever Green offering by a Sovereign issuer from the CEEMEA region. This offering highlights the global fixed income investor community’s appreciation of Qatar’s robust credit story. In addition, it highlights the strong reception of the newly established Green Financing Framework, where we witnessed a strong participation from ESG investors across regions in the offering. 

The transaction, which is the first ever green issuance by a Sovereign issuer from the GCC region, was preceded by the publication of the State of Qatar Inaugural Sovereign Green Financing Framework. The Framework was established in accordance with the highest international standards and is aligned with the Green Bond Principles issued by the International Market Association (ICMA). The Framework entails eight Eligible Green Project Categories, and the proceeds from the transaction will aide Qatar to contribute to meet its National Climate Change Action Plan (QNCCAP), and its National Environment and Climate Change Strategy (QNE).