Qatar Energy, one of the top liquefied natural gas (LNG) producers, is working on a strategy to recast itself as ecologically responsible for investors through a framework that will allow it to offer ‘green’ bonds in a deal worth several billion dollars, sources informed.
The company is working on building an Environmental, Social, and Governance (ESG) framework that will allow it to issue green bonds, which are debt that is designated for ecologically benign purposes.
It would be the first green bond offering by a national oil corporation in the hydrocarbon-rich Gulf, if it succeeds.
One of the insiders stated that a consultant is working on the framework, and that Qatar Energy sent out a request for proposals to banks, around two weeks ago.
Qatar Energy intends to create a green bond deal once the ESG framework is in place, though the debt sale is unlikely to materialise this year, according to the source. An emailed request for comment from Qatar Energy was not returned.
It was unclear what the revenues from the projected green bond measure would be utilised for.
Globally, there are no clear definitions or rules for what makes a green bond, with some regions and countries establishing their own guidelines, such as the European Commission’s announcement of a European Green Bond Standard in July.
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