APICORP and Hartree sign USD 75mln Islamic facility for voluntary carbon offsets

APICORP and Hartree sign USD 75mln Islamic facility for voluntary carbon offsets

- The Murabaha facility is designed with a syndication feature allowing additional banks to join and gain exposure to this attractive asset class

Saudi Arabia: The Arab Petroleum Investments Corporation (APICORP), an energy-focused multilateral financial institution, today announced the signing of a USD 75 million Murabaha agreement in favor of Hartree Partners Power & Gas Company (UK) Limited, an affiliate of Hartree Partners LP, a global energy and commodities firm.

The first-of-its-kind facility in the MENA region will fund high-quality voluntary carbon offsets, which will be used to develop environmentally friendly projects worldwide. Each carbon offset represents the ownership of one ton of carbon dioxide equivalent (CO2e) which offsets corresponding emissions by the holder.

Khalid Ali Al-Ruwaigh, CEO of APICORP, said, “Financial innovation plays a crucial role in ensuring a sustainable energy ecosystem. This Murabaha facility was created as part of our commitment to provide innovative financial solutions to enable a balanced energy transition, as well as support Arab countries' aspirations to reach net zero carbon emissions in line with the Paris Climate Agreement. The precedent-setting transaction serves as a major milestone for our vision of supporting the MENA region in its journey to sustainability.”

Every year, it is estimated that more than 50