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Friday, October 18, 2024 2:46 GMT
Moody’s Investors Service has assigned an SQS2 Sustainability Quality Score (Very Good) to the Government of Oman’s sustainable finance framework, which was issued last week. The Ministry of Finance has developed the sustainable finance framework under which it intends to issue green, social, and sustainability bonds, loans, or sukuk for investments in projects that deliver environmental and/or social benefits. Oman has become the first GCC state to issue the sustainable finance framework, enabling the government to meet its financial needs through sustainable financing methods.The sovereign sustainable financing framework constitutes an essential instrument in achieving national strategies for all financial, economic, environmental, and social aspects of sustainability. It also aligns with the United Nations Sustainable Development Goals (UN-SDGs), compatible with the international standards and principles of frameworks issued by the International Capital Markets Association (ICMA). In a report, Moody’s said that the sultanate’s sustainable finance framework demonstrates a significant contribution to sustainability.‘Under the framework, the issuer has established its use-of-proceeds framework to finance projects across 14 eligible categories, of which seven are green and seven are social. The framework is aligned with the four core components of the ICMA’s Green Bond Principles 2021 and Social Bond Principles 2023, as well as the Loan Market Association’s, the Asia Pacific Loan Market Association’s, and the Loan Syndications & Trading Association’s Green Loan Principles 2023 and Social Loan Principles 2023,’ Moody’s noted. Oman’s Ministry of Finance plays a key role in supporting the government’s efforts to achieve the goals of Oman Vision 2040, covering targets such as zero carbon neutrality by 2050. This is realized by aligning Oman’s financing strategy with sustainability efforts undertaken by the government. The sovereign sustainable financing framework also seeks to establish a flexible structure that allows for the issuance of various sustainable financing debt instruments—in the form of loan agreements, bonds, and instruments. This will attract new specialized sustainable financing investors who contribute to projects achieving environmental and social dimensions.