The Saudi National Bank (SNB) announced the successful execution of it's first ESG 'Use of Proceeds' repurchase agreement transaction (Repo) with Standard Chartered Bank last October. The USD 250 million transaction is the first in the GCC and MENA, and amongst the first few globally where the Repo financing proceeds were allocated towards ESG assets. The Saudi National Bank will be allocating the proceeds of the financing towards several large renewable energy projects and green initiatives in Saudi Arabia and wider GCC region. This landmark deal is an impressive feat following Saudi Arabia's recent pledge to cut its carbon emissions to net zero by 2060 and to join the Global Methane Pledge, working to lower global methane emissions by 2030. SNB has demonstrated a remarkable commitment to sustainable finance to support green growth in markets they operate in. Furthermore, the structure is part of a growing sustainable finance product suite which enables banks to align their lending portfolios with ESG goals and act as a catalyst in the transformation to a greener economy. SNB was the first institution in MENA, and private sector company in the Kingdom, to publish a report on sustainability in 2008.
