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

Green finance
28/05/2024

The State of Qatar successfully issued its inaugural USD2.5bn dual tranche green bond on Tuesday 21st May.

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).

Congratulations to the State of Qatar for a being a pioneer in the region when it comes to sustainable finance. Crédit Agricole CIB is proud to have advised Qatar on its green bond framework and subsequent inaugural green bond issuance as Global Coordinator.

Atul Sodhi

Global Head of Debt Capital Markets

Crédit Agricole CIB is very proud of advising its Middle East clients on their journey towards sustainable finance. Issuing the first ever Green sovereign Bond among the GCC countries positions State of Qatar as a pioneer and pave the way for other issuers to tap the market. This great success supported by a very strong demand should encourage the region to be more present in sustainable finance market.

Antoine Rose

Head of Sustainable Banking for Asia-Pacific and Middle East

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