According to S&P Global Ratings, Riyad Bank’s Sustainable Finance Framework is fully aligned with the Social Bond Principles (2021), the Social Loan Principles (2021), the Green Bond Principles (2021), the Green Loan Principles (2021) and the Sustainability Bond Guidelines (2021). Riyad Bank, the third-largest financial institution in Saudi Arabia by market capitalisation, has sustainability objectives that are aligned with Saudi Arabia’s Vision 2030 agenda, which targets expanding and diversifying the economy, enabling social responsibility, and increasing employment, among other goals.
Q4 2021 hedge fund letters, conferences and more
Riyad Bank's Sustainable Finance Framework
- Riyad Bank’s Use of Proceeds alignment with the applicable principles was found to be ‘strong’, given it commits to allocating the net proceeds of financing under its framework exclusively to eligible green/social projects or general-purpose loans to companies that derive more than 90% of their revenue from activities that are in line with the eligibility criteria.
- The bank’s process for project evaluation and selection was found to be ‘aligned’, as it clearly outlines the process with which its Sustainable Finance Working Group (SFWG) selects its eligible green and social projects, as well as how the proceeds of these projects will be managed and tracked.
- Riyad Bank commits to annually reporting on net proceeds, as well as the environmental and social benefits of selected projects with quantitative and qualitative impact metrics. As such, its reporting score was found to be ‘aligned’.
- The bank also commits to maintaining a sustainable finance register that will track the allocation (and non-allocation) of proceeds to each eligible project, while also specifying the type of each finance instrument used (such as sukuk, bonds, or loans).
