Commercial Bank has successfully issued its inaugural Green Bond denominated in CHF

Swiss franc (CHF)-denominated Green Bonds were successfully issued by the Commercial Bank. This represents the next phase of Commercial Bank's sustainable finance journey, the bank's first Green Bond issue under the Sustainable Finance Framework, which was released in 2023. Having been issued in Qatar, this bond is the biggest CHF Green bond from that country since 2013. It is also the largest CHF Green bond issued in the Central and Eastern Europe, Middle East, and Africa (CEEMEA) area since 2021. The pricing parameters were originally set at a spread of 130bps, but a substantial amount of demand caused them to tighten by 10bps, resulting in a final spread of 120bps. The ultimate size of the transaction was up-tiered to CHF 225m.

Through the issuing of Green Bonds, Commercial Bank hopes to give both local and foreign bond investors access to the beneficial environmental effects connected with green projects in Qatar. The bank views sustainable finance as an essential component of its overall financing strategy. In order to help achieve the objectives of Qatar's National Environment and Climate Change Strategy and National Vision 2030, Commercial Bank plans to distribute proceeds to categories like Sustainable Water and Wastewater Management, Green Buildings, and Clean Transportation. 

The offering attracted much interest from investors and was made possible by Commercial Bank's ongoing EMTN initiative.

In order to raise CHF 225 million, the Bank issued a 3-year bond with an annual coupon rate of 1.7075 percent. 

The bonds are rated A- by S&P and A by Fitch, and they are listed on SIX Swiss Exchange.

As joint lead managers for the deal, Commerzbank, Deutsche Bank, and Standard Chartered Bank were involved. In order to assist the Bank's Treasury and Investment, as well as the ESG Team, in structuring the transaction, Standard Chartered served as the Sole Sustainability Structurer.