Anis HAMDANI’s Post

Some few first steps.

The World Bank Treasury’s Green and Sustainable Finance Advisory Program within my team continues to make strides in helping clients. Recently, Viet Nam’s oldest bank, BIDV (Bank for Investment and Development of Vietnam) issued their first-ever domestic green bond. This $104 million transaction represents a significant milestone in the country's sustainable finance landscape and its efforts to achieve net-zero emissions by 2050. We supported our client though a multi-institution, multi-team collaborative effort with the Finance, Competitiveness and Innovation (FCI) Global Practice and the International Finance Corporation (IFC).   The BIDV green bond issuance is significant for several reasons: MOBILIZES PRIVATE CAPITAL FOR CLIMATE ACTION This issuance demonstrates the potential for green bonds to attract private capital towards climate and environmental projects in emerging markets. SETS A SCALABLE PRECEDENT The success of BIDV's bond paves the way for other Vietnamese financial institutions to follow suit, fostering the development of a domestic green bond market. SUPPORTS SUSTAINABLE DEVELOPMENT GOALS The proceeds from this bond will be used to finance projects aligned with Viet Nam's green growth strategy, contributing to a more sustainable future.   Read more in this case study: https://lnkd.in/emmiemG4 #VietNam | #WorldBankTreasury | #SustainableFinance | #GreenBond | #ESG | #ClimateFinance #GreenFinance Carrie Turk, George Richardson, Niraj Verma, John Nasir, Jean Pesme, Mona Haddad, Zafer Mustafaoglu Farah Imrana Hussain, Ketut Ariadi Kusuma, Zsolt Bangó, Quan Ha Ngo, Aaron Levine, Manuela V. Ferro

The successful issuance of the first-ever domestic green bond by Viet Nam’s oldest bank, BIDV (Bank for Investment and Development of Vietnam) constitutes a landmark in Viet Nam’s commitment to achieve a net-zero carbon emission target by 2050. The green bond was supported by The World Bank Sustainable Finance and ESG Advisory Program. Read more in this case study https://cutt.ly/WB-BIDV #VietNam #WorldBankTreasury #SustainableFinance #GreenBond #ESG #ClimateFinance #GreenFinance 

Islamic finance and sustainable investing share a number of common principles, thus complementing each other as a means of both capital raising and investments. Islamic finance promotes sustainable development and aligns with the U.N. SDGs through: • providing an additional layer of governance (Shari’ah) that helps in the allocation of issuance proceeds and directs them towards projects/companies that are aligned with both Shari’ah standards and ESG/sustainability criteria; • promoting financial inclusion (and thereby leaving no one behind) for those who might not engage with the financial sector for religious reasons or for lack of access, which are major challenges in overcoming poverty; • promoting environmental safeguarding and climate change mitigation in line with the defined role of humans as trustees and stewards of the Earth; • its ability to attract new sources of funding that remain untapped by conventional green and sustainable finance; and • its ability to provide resilience during financial crises due to a core principle of avoidance of speculative instruments and strong linkage to the real economy. Please read more and use the following reference. https://lnkd.in/dEcf8HCm #sukuk #UNSDGs Fatma Eser ÇINAR Secil Yildiz #sustainablefinance #COP29 TULIP SUSTAINABILITY CENTER İKLİMKARBON

Interesting article [https://lnkd.in/eD-nBeQz] by Alena Dique, founder of ESG Middle East Insights . She highlights that the Middle East is undergoing a significant shift towards clean energy solutions, driven by environmental challenges like water scarcity and economic opportunities to diversify from fossil fuel reliance. Major investments are being made by Sovereign Wealth Funds into renewable energy projects, attracted by the multifaceted benefits of decarbonization including job creation, economic growth, and utilizing the region's abundant sunshine for large-scale solar power generation potential. She also adds that the region can draw large green investments—estimated at $34 trillion in assets—from the larger Muslim world as well as from within its borders by creating cutting-edge Sharia-compliant financial products like #GreenSukuk. The High-Level Working Group on Green Sukuk (HLWG) has been advocating for the issuance of green and sustainability sukuk since its inception over two years ago. Through two of its members – LSEG (London Stock Exchange Group) and Islamic Development Bank (IsDB) in partnership with ICMA - International Capital Market Association (ICMA), they have now published the Guidance on Green, Social and Sustainability Sukuk to support the growth of the market. You can download the guidance here: https://lnkd.in/g_4J-2Yw

MENA’s Record-Breaking Green Bonds and Sustainability Sukuk Issued in 2024 In the first eight months of 2024, the MENA region saw a rise in green bonds and sustainability sukuk, showing the increasing global interest in eco-friendly finance. The GCC countries and their banks took the lead, launching important projects that attracted both local and international interest in green and ethical investments. #thearabtoday #tat #finance #Mena

New Green Bonds from CIMB Thai Bank CIMB Thai Bank is opening subscriptions for THB 2,000 million in subordinated green bonds aimed at funding long-term environmental projects. Jason Leong Kok Yew, Head of Finance, CIMB Thai Bank, revealed that the bank is offering subordinated green bonds to raise funds for long-term environmental projects. “This batch of green bonds should appeal to investors looking for environmentally friendly investments.” Key Details: • Interest Rate: 3.90% per annum (paid quarterly) • Minimum Subscription: THB 100,000 • Maturity: 10 years • Available For: Institutional investors & high-net-worth individuals Notably, these bonds are the first subordinated green bonds in Thailand to be counted as Tier 2 capital, enhancing investor security, which will be available at CIMB Thai branches nationwide on October 21-22 and 24-25, 2024. Currently, CIMB Thai has strong capital reserves, exceeding the Bank of Thailand’s requirements. As of August 31, 2024, the bank’s capital adequacy ratio was 18.8%, with Tier 1 capital at 15.0% and Tier 2 capital at 3.8%. Additional Information, these long-term subordinated green bonds are registered, unsecured, and unguaranteed, with a bondholder representative. The issuer has the right to redeem the bonds early. The bonds have a risk level of 7, a company credit rating of “AA-(tha)” with a “Stable” outlook, and a bond credit rating of “A(tha)” by Fitch Ratings (Thailand) Ltd., announced on May 31, 2024. For more information, visit www.cimbthai.com. ———— About Thailand’s Green Economy As of 2024, Thailand’s green economy is projected to grow significantly, with an estimated investment of over THB 1 trillion in renewable energy and sustainable projects. The country aims for 35% of its energy to come from renewable sources by 2037, reflecting a strong commitment to sustainability. #SustainableInvesting #GreenBonds #ThailandGreenEconomy #InvestmentOpportunity

#sustainablefinance #gcc GCC accounts for 82% of $6.8bln global sustainable sukuk issuance in H1 2024 and Saudi Arabia has emerged as the leader in sustainable sukuk issuance (42%), followed by the UAE at 33%. While UAE entities were the most active in labelling their sukuk as “sustainable” in H1 2024. Several financial institutions in the GCC launched their first sustainable sukuk this year: - Dubai Islamic Bank issued $1 billion in sustainable sukuk in March - Emirates Islamic Bank issued $750 million in sustainable sukuk in May. - Qatar International Islamic Bank issued $250 million of sustainable certificates in July. It is expected the governments of Saudi Arabia and Oman to issue their first sustainable sukuk in “the coming months”, driven by the recent introduction of sustainable finance frameworks.

🌱 I am pleased to share our latest knowledge brief: "Opportunities to Advance Thematic Bonds and Sukuk in Indonesia," co-developed with my dear colleagues Devjit Roy Chowdhury Ralista Haroen. 🔍 This report explores Indonesia's potential to enhance thematic bonds and sukuk issuance, particularly in local currency, to advance 🇮🇩 sustainability and climate agendas. It aims to foster ecosystem strengthening by examining investor considerations, issuer challenges, and the vital role of development partners. 🤝 It was developed through a robust process involving the contribution of key actors, including Otoritas Jasa Keuangan ICMA - International Capital Market Association Climate Bonds Initiative Nomura Asset Management Credit Guarantee and Investment Facility. Find out more: https://lnkd.in/gQJJEHQx Sujala Pant Tshering Lhamo Joanne Manda Radhika Lal Tenke Z. UNDP Sustainable Finance Hub #UNDP #Sustainability #SustainableFinance #FinancingForSDGs

🌍 Green Sukuk: How Islamic Finance is Supporting Climate Mitigation 💚 Ever wondered how Islamic finance is helping tackle climate change? One innovative solution is Green Sukuk, a type of bond that finances eco-friendly projects in line with Islamic principles. 🌱 Unlike traditional bonds, Sukuk works a bit differently. In Islamic finance, interest (called Riba) is prohibited because it is seen as exploitative. Instead of earning interest, Sukuk (which are like bonds) work by sharing profits from a real, physical asset or project. Here's how it differs: 🍀 In a traditional bond, investors lend money and receive interest as repayment over time. 🍀 In a Sukuk, investors buy a share of a real asset (like a solar farm or a building). They then earn profits from the income that the asset generates, like rent or sales, rather than earning interest. This approach aligns with Islamic principles by ensuring that investments are tied to real economic activities and not just money lending. With Green Sukuk, these assets are tied to environmental projects like solar energy🌞, wind farms🍃, or clean water initiatives💧. 💡 Why does this matter? Green Sukuk is playing a key role in helping countries, particularly in Southeast Asia and the Middle East, fund projects that cut carbon emissions and support their climate goals. 🌍 For example, Indonesia and Malaysia have successfully issued Green Sukuk to support renewable energy and green infrastructure. This approach not only aligns with faith-based values but also makes a big impact on the fight against climate change. It opens up new ways for countries and investors to support sustainability while ensuring the investments are ethical and responsible. As the world races to meet global climate targets, Green Sukuk could be a powerful tool in financing the green transition while adhering to Islamic ethical standards. 🌿 #ClimateFinance #GreenSukuk #Sustainability #ClimateAction #IslamicFinance ----------------------------------------------------------------------------------- 🌐 Do you think Green Sukuk be a key to unlocking more sustainable investments globally? Let’s connect @Tania Biswas and dive into the discussion! 💬 (Image Source: Envirolink)