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- The facility’s Sharia compliance and syndication features enable higher access for banks to gain exposure to the attractive high-quality carbon offsets asset class
Saudi Arabia: The Arab Petroleum Investments Corporation (APICORP), an energy-focused multilateral financial institution, won the “ESG Deal of the Year 2022” by Islamic Finance News (IFN) for its USD 75 million Murabaha facility to fund high-quality carbon offsets, the first of its kind facility in the MENA region.
Commenting on the agreement, Nicolas Thévenot, Managing Director, Corporate Banking at APICORP said "We are delighted to receive this recognition from Islamic Finance News. The voluntary carbon offset Murabaha facility is truly a landmark transaction which underscores APICORP’s ongoing drive to offer innovative financial solutions in support of a balanced energy transition and decarbonizing the energy value chain to achieve the region’s 2050 net zero targets."
The carbon offset facility, which was signed by Hartree Partners Power & Gas Company, an affiliate of Hartree Partners LP, a global energy and commodities firm, will be used by integrated carbon solutions provider Vertree to develop high-impact decarbonization projects for the MENA region and beyond. This transaction is a major milestone for APICORP's vision of supporting the region's sustainability journey.
Bryan Keogh, Group CFO at Hartree Partners LP, said "We are thrilled to have partnered with APICORP on this unique Islamic facility. This recognition is a testament to the importance of our work and our commitment to the Paris Agreement targets, and we look forward to continuing our partnership with APICORP in the sustainability space."
Robust voluntary carbon markets have emerged as a cost-effective asset class for governments and corporations to decarbonize their footprints and for investors to mitigate risks associated with evolving climate regulations. According to a report by Shell and Boston Consulting Group (BCG), the voluntary carbon offset market is projected to grow in value from about USD 2 billion in 2021 to USD 10-40 billion by 2030.
The IFN Deals of the Year award was established in 2006 to recognize those who have participated in the Islamic finance industry’s most groundbreaking transactions each year. APICORP’s voluntary carbon credit facility was recognized for its innovative approach to addressing climate change and its adherence to the principles of Islamic finance. Moreover, the award acknowledges the facility’s syndication feature, which allows additional banks to join and gain exposure to this attractive asset class.
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ABOUT APICORP
The Arab Petroleum Investments Corporation (APICORP) is an energy-focused multilateral financial institution established in 1975 by the ten Arab oil exporting countries. APCIORP’s mission is to support the sustainable development of the region’s energy sector and related industries through a range of financing and direct equity solutions, as well as energy research and advisory services. APICORP applies best-practice ESG principles across all operations, with environmental and socially-linked projects comprising 13% of its USD 4.2 bn loan portfolio which encompasses leading public and private sector partners in 25 countries. APICORP is also the only energy-focused financial institution in the MENA region rated ‘Aa2’ by Moody’s, ‘AA’ by Fitch and ‘AA-‘ by S&P.
View APICORP’s ESG Policy Framework here
For more information about APICORP, please visit: www.apicorp.org
For more information, please contact:
| Raeda Al-Sarayreh | Hassan Al-Jundi |
| Zeeshan Masud | Areen Alfahel |
ABOUT HARTREE PARTNERS LP
Hartree Partners, LP (“Hartree”) is a leading global merchant commodities firm specializing in energy and associated industries. Owned by its management and Oaktree Capital, Hartree specializes in proprietary trading and arbitrage, structured transactions, refinement, principal investments, and transportation services. Hartree has in excess of $10 billion in assets, including over $2 billion in midstream and downstream assets in key markets (refining, storage, shipping, transportation, renewable power). Hartree operates on all continents through 16 offices with more than 600 dedicated employees serving businesses, governments and institutional investors from around the world. Hartree’s unified investment philosophy, built upon deep fundamental research and robust proprietary risk controls, has enabled the Company to generate superior investment results since its founding in 1997.
For more information on Hartree, please visit www.hartreepartners.com.
