Riyadh - The Arab Petroleum Investments Corporation (APICORP), an energy-focused multilateral financial institution, announced the signing of a $75 million Murabaha agreement in favor of Hartree Partners Power & Gas Company (UK) Limited, an affiliate of Hartree Partners LP, a global energy and commodities firm.

The first-of-its-kind facility in the MENA region will fund high-quality voluntary carbon offsets, which will be used to develop environmentally-friendly projects worldwide, according to a press release on Monday.

Each carbon offset represents the ownership of one tonne of carbon dioxide equivalent (CO2e) which offsets corresponding emissions by the holder.

The Murabaha facility is designed with a syndication feature allowing additional banks to join and gain exposure to this attractive asset class.

Khalid Ali Al-Ruwaigh, CEO of APICORP, said: “Financial innovation plays a crucial role in ensuring a sustainable energy ecosystem. This Murabaha facility was created as part of our commitment to provide innovative financial solutions to enable a balanced energy transition, as well as support Arab countries' aspirations to reach net zero carbon emissions in line with the Paris Climate Agreement. The precedent-setting transaction serves as a major milestone for our vision of supporting the MENA region in its journey to sustainability.”

APICORP’s facility will fund carbon offsets that are registered with the non-profit platform Verra, the largest global registry for nature-based offsets.

All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (Syndigate.info).