StanChart executes $250 mln ESG-based repo deal with Saudi National Bank (updated)

Gulf Island Fabrication

15/11/2021 10:41

(Adds detail, FAB dea)
    DUBAI, Nov 15 (Reuters) - Standard Chartered Bank  STAN.L 
said on Monday it has executed  a $250 million repurchase
agreement transaction (Repo) based on ESG principles with the
Saudi National Bank. 
    The transaction is the first in the Middle East, North
Africa and Pakistan region, and among the first globally, where
repo financing proceeds are allocated towards ESG assets, it
said in a statement.
    The Saudi National Bank, the kingdom's largest bank, will
allocate the proceeds of the financing to several large
renewable energy projects and green initiatives in Saudi Arabia
and the wider Gulf region.
    The deal follows Saudi Arabia's recent pledge to cut its
carbon emissions to net zero by 2060.
    In September, a senior Standard Chartered executive told
Reuters the bank is looking to add bankers to focus on
sustainable finance, project finance and capital markets in
Saudi Arabia, a market it sees will become a front-runner for
its regional business in coming years. urn:newsml:reuters.com:*:nL1N2QH1KZ
    Separately First Abu Dhabi Bank  FAB.AD , UAE's largest
bank, said it has executed a green repurchasing transaction with
Deutsche Bank. 
    Under this agreement, FAB receives Emerging Market Eurobonds
collateral from Deutsche Bank and provides U.S. dollar financing
in exchange. Deutsche Bank will deploy the funds into green
financing activity.

 (Reporting by Saeed Azhar; Editing by Kirsten Donovan and Angus
MacSwan)
 ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters
Messaging: saeed.azhar.reuters.com@reuters.net))