RIYADH: Qatar is set to launch its inaugural green bond in what would be its first external debt issuance in four years, according to its finance minister. 

Speaking to Bloomberg Television on the sidelines of the World Economic Forum in Davos, Ali Al-Kuwari said that “we’re ready to do it very soon” when asked about the move.

The official highlighted that Qatar is “not hungry for money,” but it will pursue the issuance “mainly to send a strong statement” in combating climate change.

One of the world’s biggest producers of liquefied natural gas, Qatar has not issued Eurobonds since early 2020, when it sold $10 billion of debt. 

In 2022, the Gulf state’s central bank announced plans to implement strategic actions, including facilitating green bonds issuance and advancing cooperation with Qatar Development Bank, to promote diversification efforts.

The aim is to fund projects meant to reduce carbon and other planet-warming emissions.

According to a report by KPMG in December 2023, the country could grow its green bond market and find new avenues for sustainable financing.

It said: “By encouraging the participation of various stakeholders and developing a favorable regulatory environment, Qatar can attract a broader range of issues and investors.”

The government is rated AA by S&P Global Ratings, just two steps below the highest-possible level.

According to Bloomberg indexes, its dollar bonds yield 4.92 percent on average, which is one of the lowest levels in emerging markets.

Fitch Ratings has recently forecast the global value of the sukuk market will surpass $1 trillion in the medium term, reaching $850 billion at the end of 2023 despite “geopolitical triggers.”

S&P Global Ratings forecast issuance of $170 billion in 2023, stating that higher financing needs in some core Islamic finance markets will drive demand with global liquidity conditions potentially easing.