The Arab Petroleum Investments Corp. (APICORP) has launched a green bond framework, ahead of plans to raise bonds that are aligned with the environmental, social and governance (ESG) principles. 

The multilateral development bank headquartered in Saudi Arabia, whose green assets currently account for $500 million in loans and direct investments, had said this month it would set aside $1 billion to support green energy projects over the next two years. 

In its latest statement, APICORP said the new framework will serve as a means to raise green bonds/ sukuk which reinforce its commitment to projects that are aligned with its recently approved ESG policy framework. 

“By launching the green bond framework, APICORP is providing new avenues for investment in projects and ventures that further the development of safe, affordable and renewable energy sources,” said Ahmed Ali Attiga, CEO of APICORP. 

“The framework reflects our deep understanding of the ESG impact of our investments across the energy spectrum and our commitment to setting out new engagement strategies with our stakeholders to spread awareness of their ESG exposure.” 

The investment firm, which is owned by the governments of Organisation of Arab Petroleum Exporting Countries, had committed to measure the ESG footprint of all its assets by the end of 2023 through active engagement with stakeholders. 

Its ESG policy framework is underpinned by three core pillars – responsible banking and investing, social inclusion and partnerships and financial resilience and governance. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

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