Mashreq, a prominent financial institution in the MENA region, has signed a landmark Sustainability-Linked Facility (SLF) agreement with Landmark Retail, a leading value conglomerate in the Middle East’s retail sector. This agreement marks the first time a private sector company in Qatar has entered into a bilateral sustainability-linked loan.
The collaboration aims to further enhance Landmark Retail’s sustainability goals and highlights Mashreq’s leadership in the sustainable finance sector. As part of its broader commitment to sustainability, the bank is working to facilitate USD 30 billion in sustainable finance by 2030.
Key Sustainability Targets
The SLF financing is tied to specific key performance indicators (KPIs) that focus on advancing Landmark Retail’s environmental sustainability efforts. These include increasing renewable energy capacity, implementing energy management solutions for improved efficiency and savings, and promoting responsible sourcing. Additionally, the company aims to boost its use of Better Cotton in its products, contributing to more sustainable sourcing practices. Landmark Retail will also focus on waste reduction and recycling across its operations.
Commitment to Sustainable Finance
Tarek El Nahas, Group Head of International Banking at Mashreq, expressed pride in the partnership, saying, “This collaboration marks a significant advancement in our commitment to sustainability and reinforces Mashreq’s leadership in mobilizing sustainable finance across the region, particularly in Qatar. We recognize that our greatest impact comes from directing capital flows responsibly and providing solutions that go beyond traditional financing.”
Salman Gulzar, Country Head of Mashreq Qatar, added, “This partnership represents a key step in advancing sustainable finance in line with Qatar’s vision. It exemplifies the impactful nature of our Climb2Change initiative, which helps clients with tailored financing solutions for their sustainability journeys. Our commitment to responsible banking continues to foster positive change in the region.”
Landmark Retail’s Sustainability Commitment
Rajesh Garg, Group Chief Financial Officer of Landmark Retail, highlighted the company’s dedication to reducing its environmental impact. “Through this partnership, we aim to integrate renewable energy, circularity, and responsible sourcing into our operations, marking a milestone in both our journey and Qatar’s sustainability ambitions,” he said.
Mashreq’s Continued Leadership in Sustainable Finance
This partnership follows Mashreq’s recent role in leading the USD 3.25 billion debut leveraged buyout sustainability-linked financing for GEMS Education, marking the largest sustainability-linked financing deal in the region up to July 2024.
The SLF with Landmark Retail also aligns with Mashreq’s ongoing sustainable finance initiatives, particularly its Climb2Change program. This initiative encompasses the bank’s efforts in sustainable finance, responsible banking products, and social impact, reinforcing Mashreq’s position as a leader in sustainable banking within the MENA region and globally.
Through this partnership and its broader efforts, Mashreq continues to strengthen its role in driving positive environmental and social impact across the region.
