Qatar Issues $2.5 Billion Green Bonds in First External Debt Issuance in Four Years
In a groundbreaking move, Qatar has issued green bonds totaling $2.5 billion in two tranches, marking the Gulf state’s first external debt issuance in four years. The International Financing Review reported the issuance, highlighting the significance of the operation.
The green bonds consist of five-year offerings worth $1 billion and ten-year debt securities worth $1.5 billion. The yields were set at 30 basis points above US treasury bonds for the five-year bonds and 40 basis points for the ten-year bonds, showcasing Qatar’s commitment to sustainable financing mechanisms.
Qatar’s Merchandise Trade Balance Surplus Declines in First Quarter of 2024
On a separate note, new data revealed a decrease in Qatar’s merchandise trade balance surplus in the first quarter of 2024, amounting to 53.2 billion Qatari riyals ($14.6 billion) compared to 68.4 billion riyals in the same period last year. The country’s total exports also saw an 8.6 percent drop, while imports surged by 25.4 percent.
Qatar’s Finance Minister Ali Al-Kuwari Ready for External Debt Issuance
Qatar’s Finance Minister, Ali Al-Kuwari, expressed readiness for the issuance of external debt, emphasizing the country’s commitment to combat climate change. Despite not being in urgent need of funds, Qatar aims to make a strong statement through the issuance of green bonds, aligning with its sustainability goals.
Qatar’s Strategic Actions to Promote Diversification Efforts
In 2022, Qatar’s central bank announced strategic actions to promote diversification efforts, including facilitating green bond issuance and cooperation with the Qatar Development Bank. The goal is to fund projects aimed at reducing carbon emissions and addressing climate change, showcasing Qatar’s commitment to sustainability.