MANAMA: The Arab Petroleum Investments Corporation (Apicorp), a multilateral development bank in which Bahrain owns three per cent stake, has launched a green bond framework.
The model will serve as a means to raise green bonds/sukuk reinforcing the institution’s commitment to projects aligned with its recently-approved ESG Policy Framework.
In particular, the projects financed, refinanced and/or invested in by Apicorp green bond/sukuk are also intended to be aligned with the UN Sustainable Development Goals (SDGs) and will aim to promote climate mitigation and adaptation, the transition to a circular economy, pollution prevention and control and biodiversity preservation.
Dr Ahmed Ali Attiga, chief executive of Apicorp, said: “By launching the green bond framework, Apicorp is providing new avenues for investment in projects and ventures that further the development of safe, affordable, and renewable energy sources. The framework reflects our deep understanding of the ESG impact of our investments across the energy spectrum and our commitment to setting out new engagement strategies with our stakeholders to spread awareness of their ESG exposure. This will, in turn, enhance our collective ability to address the challenges posed by climate change.”
Dr Sherif Ayoub, chief financial officer of Apicorp, said: “The green bond framework meets our strategic objective of enlarging the share of green financing within our lending and investment portfolios as well as expands the potential for regional and sectoral debt issuers to access the green space. We are particularly pleased with the second party opinion of ‘Robust’ that was provided by V.E, as it confirms our strong willingness and ability to lead the energy transition in the Mena region, and beyond, in a manner that corresponds to global best practices.”
Apicorp plans to allocate $1 billion towards green energy projects and sustainable energy companies over the next two years, which is complemented by a commitment to measure the ESG footprint of all its assets by end of 2023 through active engagement with stakeholders.
The ESG policy framework also guides how Apicorp will go about identifying, measuring, managing, monitoring, and reporting ESG risks and opportunities.
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