Demand for green Islamic bonds gain momentum in GCC states

SectorFinancial Markets

Investor appetite for green Islamic bonds, or green sukuks, is growing in the Arabian Gulf countries despite the lukewarm economic growth amidst the ongoing pandemic, according to a report.Saudi Arabia’s electric transmission monopoly, Saudi Electricity Company (SEC), issued a multi-tranche $1.3 billion green sukuk and reported an order book of more $5.2 billion, indicating the immense appetite for sustainable Islamic bonds, said Moody’s Investors Service in a report.In addition, SEC will invest in transmission and distribution infrastructure to connect renewable energy sources to the grid with the aim of reducing generation emissions by 25 per cent by 2025.Currently, Saudi Arabia is almost exclusively reliant on fossil fuels for power generation and has a high energy usage per capita because of its reliance on air conditioning and desalinated water."The issuance comes more...