Doha, February 14 (QNA) - HSBC has launched, in partnership with Qatar National Bank (QNB), a new green finance instrument in the Middle East, North Africa and Turkey region that will help increase the short term sustainable funding options for banks and major companies and boost demand for green assets.
This is HSBC's first green repurchase agreement, or repo, globally. Repos are short-term money market instruments used by banks and major corporations to manage near term liquidity and funding needs.
Abdul Hakeem Mostafawi, CEO of HSBC Qatar, said: "This transaction expands the range of green funding solutions we can offer to the market and partnering with QNB on the first green transaction of its kind for HSBC indicates the importance of Qatar and the Middle East to HSBC Group's strategy - and particularly our ambition to help lead the transition to net zero." Noor Al Naimi, General Manager, Treasury and Financial Institutions QNB Group, stated: "The transaction underscores our continued commitment towards sustainability and environmental principles. This affirms our conviction that sustainability is a strategic imperative as we continue to work with counterparties to boost the sustainable finance ecosystem, and to elevate our green products and capabilities." The green repo sees HSBC borrow cash from QNB in exchange for ownership of green bonds. HSBC then allocates an amount equal to the purchase price to eligible businesses and projects that promote transition to a low-carbon, climate resilient and sustainable economy, and provide clear environmental sustainability benefits, with a focus on clean transportation. (QNA)