Reinforces APICORP’s focus on funding of renewable energy and other green projects
Green Bond Framework follows the approval of the ESG Policy Framework in April 2021; Reinforces APICORP’s focus on funding of renewable energy and other green projects; Exposure to green assets in lending portfolio more than quadrupled from 2015 to 2020; Paves the way to the issuance of a Green Bond in the near future as one of the first energy focused institutions in the world to do so.
The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution focused on the energy sector in the MENA region, today announced that it has launched its inaugural Green Bond Framework (Framework).
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The Framework will serve as a means to raise Green Bonds/Sukuk which reinforce the institution’s commitment to projects that are aligned with its recently approved ESG Policy Framework as well as advance the development of the broader sustainable finance market. In particular, the projects financed, refinanced and/or invested in by APICORP’s Green Bond/Sukuk are also intended to be aligned with the 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.
Notably, the Green Bond Framework is in alignment with the International Capital Market Association’s (ICMA) Green Bond Principles 2021 (GBP). In addition, the Green Bond Framework enjoys a Second Party Opinion (SPO). V.E’s SPO assesses APICORP’s Green Bond program “Contribution to Sustainability” and “Expected Impacts” as “Advanced,” along with a “Coherent” classification vis-à-vis APICORP’s strategic sustainability priorities and sector issues.
Dr. Ahmed Ali Attiga, Chief Executive Officer of APICORP, said: “The energy sector is undergoing an exciting and rapid transition towards a cleaner and more sustainable energy mix. 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 Elsayed 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.”
The latest announcement follows the unveiling of APICORP’s ESG Policy Framework and its plans to allocate US $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 its stakeholders. Notably, the ESG Policy Framework is underpinned by three core pillars – Responsible Banking and Investing, Social Inclusion and Partnerships, and Financial Resilience and Governance – and is a key element of APICORP’s strategy to formalize and institutionalize its commitment to environmental protection, social responsibility, and robust governance. It also guides how APICORP will go about identifying, measuring, managing, monitoring, and reporting ESG risks and opportunities.
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