Commercial Bank issues Qatar's largest ever Green CHF-denominated bond following strong demand

Commercial Bank has successfully issued its inaugural Green Bond denominated in CHF (Swiss Franc). This is Commercial Bank’s debut Green Bond issuance under its Sustainable Finance Framework published in 2023 and represents the next step in its sustainable financing journey.

The bond is the largest ever CHF Green bond issued in Qatar, the largest CHF bond issuance from Qatar since 2013, and the largest CHF Green bond out of the Central and Eastern Europe, Middle East and Africa (CEEMEA) region since 2021.

Initial pricing terms of a spread of 130bps but due to significant demand was tightened by 10bps to a final spread of 120bps with the final size up tiered to CHF 225m from a range of institutional investors.

Commercial Bank considers sustainable financing as an integral part of its overall financing strategy and seeks to provide global and domestic bond investors with access to the positive environmental impacts associated with green projects in Qatar through the Green Bond issuance.

Commercial Bank expects to allocate proceeds to categories such as Sustainable Water and Wastewater Management, Green Buildings and Clean Transportation, which is expected to contribute towards achieving the goals of Qatar National Vision 2030 and Qatar’s National Environment and Climate Change Strategy.

Commercial Bank Group CEO Joseph Abraham said, “Commercial Bank’s debut Green CHF-denominated bond issuance marks a significant milestone in our sustainable financing journey, reinforcing our commitment to driving impactful green projects in Qatar.

“This issuance not only aligns with our strategic vision but also demonstrates our capability to tap into international markets, offering investors a unique opportunity to support Qatar National Vision 2030. By integrating sustainability into our financing strategy, we are positioning ourselves at the forefront of environmental stewardship, while delivering value to our investors and the broader community.”

The issuance was under Commercial Bank’s existing EMTN programme and received substantial interest from investors. The Bank issued a 3-year bond raising CHF 225 million at a coupon rate of 1.7075% payable annually. The bonds are listed on SIX Swiss Exchange and is rated A- by S&P and A by Fitch.

Commercial Bank executive general manager (Treasury and Investments) Parvez Khan said, “Our inaugural Green Bond issuance reflects our commitment to advancing sustainable projects in Qatar. This achievement underscores our dedication to responsible financing, with a vision to drive meaningful environmental impact.

“The overwhelming interest from investors not only highlights their confidence in our approach but also reinforces the growing importance of green initiatives in shaping the future of global finance.”

Commerzbank, Deutsche Bank, and Standard Chartered Bank acted as Joint Lead Managers for the transaction. Standard Chartered acted as the Sole Sustainability Structurer supporting the Bank’s Treasury and Investment and ESG Team in structuring the transaction. Sustainalytics issued a second party opinion on the Bank’s sustainable finance framework.