Commercial Bank (CB) has successfully issued its inaugural green bond denominated in Swiss Francs (CHF), marking a significant milestone in its sustainable financing journey. This bond is the largest CHF Green bond ever issued by a Qatari entity, as well as the largest CHF bond issuance from Qatar since 2013. It also stands as the biggest CHF Green bond from the Central and Eastern Europe, Middle East, and Africa (CEEMEA) region since 2021.

The bond was initially priced with a spread of 130 basis points (bps), but due to strong demand from institutional investors, the spread was tightened by 10 bps to a final 120 bps. The total bond size was increased to CHF 225 million, reflecting significant interest. The issuance is part of Commercial Bank’s sustainable finance framework, launched in 2023, and highlights the bank’s commitment to advancing environmentally friendly projects in Qatar.

Proceeds from the bond will be allocated to key sustainable projects in sectors like Sustainable Water and Wastewater Management, Green Buildings, and Clean Transportation. These initiatives support Qatar’s National Vision 2030 and contribute to the country’s National Environment and Climate Change Strategy, which focuses on fostering sustainable development and reducing environmental impact.

Emphasizing the strategic significance of the bond, Commercial Bank Group CEO Joseph Abraham said, “This debut Green CHF-denominated bond issuance marks an important step in our sustainable financing journey and reflects our commitment to driving impactful green projects in Qatar. It aligns with our strategic vision and demonstrates our ability to tap international markets, offering investors a unique opportunity to support Qatar National Vision 2030.”

Commercial Bank issued a 3-year bond with a coupon rate of 1.7075 percent, listed on the SIX Swiss Exchange. The bond is rated A- by S&P and A by Fitch, signaling strong confidence in the bank’s financial stability.

Highlighting the growing investor interest in sustainable finance, Commercial Bank Executive General Manager of Treasury and Investments Parvez Khan said, “Our inaugural Green Bond issuance showcases our commitment to responsible financing, with a focus on driving meaningful environmental impact. The overwhelming interest from investors underscores their confidence in our approach and reflects the increasing importance of green initiatives in shaping global finance.”

Commerzbank, Deutsche Bank, and Standard Chartered Bank acted as Joint lead managers for the transaction, with Standard Chartered also serving as the sole sustainability structurer, working closely with Commercial Bank’s treasury, investment, and ESG teams to structure the deal. Sustainalytics provided a second-party opinion on Commercial Bank’s sustainable finance framework, further validating the bank’s approach to sustainable financing.

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