Green finance surges in MENA region in first half of 2021, exceeding global growth rates

Green finance surges in MENA region in first half of 2021, exceeding global growth rates

Green and sustainability-linked debt issuance in the MENA region reached $6.4 billion in the first half of 2021, already exceeding the total for the whole of last year, according to Bloomberg's H1 2021 Capital Markets League Tables.

 

H1 2021 green and sustainability-linked debt issuances in the MENA region (approximately $6.4 billion) are already up approximately 38% on total 2020 volumes in the same category (approximately $4.7 billion). The majority of this increase can be attributed to the Red Sea Development green loan which stood at around $3.8 billion. As a result of these new developments, and as an effect of the green bond issuances from First Abu Dhabi Bank (FAB), financials have taken a lead from a sector-wide perspective. The proceeds from such debt have been used in real estate, project finance, refinance and general corporate purposes.