Doha, June 13 (QNA) - Qatar International Islamic Bank (QIIB) announced that Sustainable Fitch, the leading global sustainability ratings agency, has issued its Post-Issuance Review relating to the allocation disclosure for the proceeds of QIIB's Sustainable Sukuk issued in January 2024.

In its report, published from Toronto and Barcelona, Sustainable Fitch confirmed that the allocation and deployment of the Sukuk proceeds were fully aligned with the eligibility criteria set out in QIIB's 2024 Sustainable Finance Framework.

The independent review further underscores the strong international confidence in QIIB's strategic direction and sustainability framework.

The comprehensive assessment found that the total financed portfolio allocated to QIIB's Sustainable Sukuk issuances amounted to QAR 2,852.4 million (approximately USD 784 million).

The proceeds were fully allocated to eligible green and social assets and projects across seven key development sectors in Qatar, reflecting the tangible impact of the bank's financing activities and their alignment with global Environmental, Social and Governance (ESG) standards.

The Sustainable Fitch report also highlighted the precision of QIIB's allocation approach and the bank's strong commitment to maintaining a diversified sustainable asset portfolio, ensuring a balanced allocation between environmentally focused (green) projects and projects that deliver social and developmental impact.

Allocation ratios recorded in QIIB's ESG Register reflected a strong focus on transformational sectors, with Green Buildings accounting for the largest share at 54.4 percent, supporting sustainable and energy-efficient real estate developments across Qatar.

This was followed by ‘Access to Essential Services' at 22.5 percent, financing critical infrastructure and essential social services.

The remaining proceeds were strategically allocated across a range of eligible sectors, including Pollution Prevention and Control (8.7 percent), Sustainable Water and Wastewater Management (7.7 percent), Employment Generation and Support for Small and Medium-Sized Enterprises (4.6 percent), as well as Clean Transportation (1.5 percent) and Energy Efficiency (0.7 percent).

Commenting on the achievement, Chief Executive Officer of QIIB, Dr. Abdulbasit Ahmed Al Shaibei said: "We take great pride in the significant progress we have made in the field of sustainability, particularly as the first Qatari bank to issue a Sustainable Sukuk.

The findings of Sustainable Fitch's Post-Issuance Review serve as an independent international validation of the effectiveness and strength of QIIB's governance and operational frameworks, as well as our strong ability to consistently fulfill our commitments to global investors and international capital markets with the highest levels of transparency and reliability."

Dr Al Shaibei added: "Our success in allocating the full proceeds of the USD 750 million Sustainable Sukuk in complete alignment with the relevant eligibility criteria demonstrates that our ESG initiatives are firmly embedded in our business and operating model, delivering tangible benefits to Qatar's economy and society. The Bank's accelerated and well-considered steps in advancing sustainable finance are a core component of our commitment to contributing actively to the objectives of Qatar National Vision 2030 and are closely aligned with the principles and priorities of the Third Financial Sector Strategy approved by Qatar Central Bank."

He noted: "This pioneering strategy has established an ambitious roadmap and clear benchmarks for advancing sustainable banking, green finance and the integration of ESG risk assessment into the core of credit and investment decision-making.

"At QIIB, we strive to be among the leading financial institutions that turn Qatar Central Bank's vision and directives into tangible outcomes that further enhance the competitiveness and standing of Qatar's banking sector as a leading regional and international financial hub."

Dr Al Shaibei concluded: "The successful issuance of this Sukuk in January 2024 demonstrated the depth of international confidence in QIIB and the strong investor demand for the Bank's financial instruments. We remain committed to further developing and expanding our portfolio of innovative financing solutions that are aligned with both Sharia principles and sustainability objectives. In doing so, we continue to build on a robust internal governance framework that supports the Bank's position and future ambitions in leading the advancement of sustainable and green Islamic banking." (QNA)