QInvest Pioneers Sustainability-Linked Facility
QInvest LLC, a leading Qatari investment firm, has made a groundbreaking move in the financial sector by securing a US$275 million Sustainability Linked Facility (SLF). This facility represents the first transaction of its nature and reflects a significant step forward in the evolution of sustainable Islamic finance.
The facility garnered strong investor interest, leading to an oversubscription and an increase in size. A diverse consortium of financial institutions—including HSBC, Al Rajhi Bank Kuwait, Al Rajhi Bank Malaysia, Abu Dhabi Commercial Bank, Dukhan Bank, Al Rayan Bank, and Doha Bank—participated in this transaction.
A critical feature of this financing arrangement is its adherence to global sustainability standards, including the Net Zero Asset Managers Initiative (NZAMI) and the UN Principles for Responsible Investment (UNPRI).
NZAMI (Net Zero Asset Managers Initiative) is a global initiative where asset managers commit to supporting the goal of net-zero greenhouse gas emissions by 2050 or sooner. It encourages financial institutions to align their investment strategies with climate objectives and take concrete steps toward reducing carbon footprints in their portfolios.
UNPRI (United Nations Principles for Responsible Investment) is a framework developed by the United Nations to encourage investors to incorporate environmental, social, and governance (ESG) factors into their decision-making. It provides six principles that guide responsible investment practices, ensuring that financial institutions contribute to sustainability and ethical governance.
The facility incorporates stringent KPIs that QInvest must meet annually, reinforcing its dedication to environmental and governance objectives. This approach ensures that financial success is directly linked to sustainability commitments, setting a benchmark for other institutions within the Islamic finance sector.
This also underscores Qatar’s growing influence in the sustainable finance landscape. Recent high-profile deals, such as Dukhan Bank’s $800 million sukuk issuance and Qatar Islamic Bank’s $5 billion sukuk program (with $750 million arranged by QInvest). The issuance attracted substantial interest from both regional and global investors, with the order book exceeding three times the offered amount. This makes it the largest sukuk issuance by a Qatari Islamic bank since 2020.
QInvest’s ESG-centric strategy aligns closely with Qatar’s Vision 2030, which prioritises long-term economic and social sustainability. The move shows how Islamic finance can seamlessly integrate with global responsible investment practices, paving the way for further advancements in the sector.