Pressure is growing for prudential measures to help tackle the climate crisis, with banks facing a rise in estimated credit losses of up to 20% in a 'hot-house' scenario. But bankers say climate-related stress tests should not lead to more capital requirements, and some propose alternatives.
CIB is leading the charge among Egypt's banks to build a sustainable finance market, with help from the International Finance Corporation and at the behest of the central bank. Corporates are showing rising interest in issuing green bonds but will face ESG reporting from next year.
Hotel and shopping mall group Majid Al Futtaim will use the proceeds from its new $1.5bn sustainability-linked loan to target emissions, green malls and, in a first for the Middle East, gender inequality. Head of treasury John Arentz provides the details.