Bahrain Islamic Bank presents a sustainable financial framework in cooperation with Standard Chartered

Bahrain Islamic Bank (BisB), the leading bank in providing innovative and simplified Islamic digital banking services in the Kingdom of Bahrain, has officially launched a sustainable financial framework, which represents a milestone in its commitment to responsible and purposeful banking practices.

The framework was developed in collaboration with Standard Chartered Bank, as a sustainability structuring advisor, and was independently validated by a second-party opinion from ISS Corporate Solutions, confirming the framework’s adherence to international standards for sustainable finance.

Under the new framework, Bahrain Islamic Bank will be able to finance projects and activities classified as green, social or sustainable. This framework will also enable the issuance of green, social or sustainable sukuks that comply with the ICA Green Bond Principles (June 2025), the Social Bond Principles (June 2025), and the Sustainability Bond Guidelines (2021), in addition to the CMA Green Finance Principles (March 2025), and the Social Finance Principles (March 2025). 2025).

This framework also provides a strong platform for the bank to issue green, social and sustainable debt instruments such as sukuk, which can be used to finance or refinance eligible sustainable projects, serving as an approved reference for the classification of sustainable revenues and assets for BisB.

On this occasion, Fatima Al Alawi, CEO of Bahrain Islamic Bank, said: “The launch of the Sustainable Finance Framework represents an important step towards integrating environmental, social and corporate governance principles into the core of our financing activities, as this initiative reflects our vision of creating long-term value, not only for stakeholders, but also for society and the environment on a broader scale. It will also enable us to allocate capital more efficiently, make a tangible impact, and contribute effectively to achieving national sustainable development goals.”

By implementing the new framework, Bahrain Islamic Bank will now be able to evaluate and rank eligible projects across the renewable energy, clean transportation, green building sectors, as well as employment initiatives. The framework is based on four basic pillars: the first: “use of proceeds” to determine clear criteria for allocating funds to eligible sustainable projects. The second: “Project Evaluation and Selection,” which includes carrying out a careful examination to identify projects with a meaningful environmental and social impact. In addition to the above, the “Revenue Management” pillar transparently defines the mechanisms for optimal use of funds, while the “Reporting” pillar ensures that regular disclosures are maintained about the use of funds and project results.

Bahrain Islamic Bank seeks to enhance risk management, increase accountability, and support national and global efforts seeking to provide a more comprehensive and flexible financial system, by integrating the principles of environmental, social and institutional governance into all its operations.

Amir Diri, Chief Financial and Strategy Officer at Bahrain Islamic Bank, said: “This framework represents a landmark moment in our journey towards sustainable finance, and a true reflection of Bahrain Islamic Bank’s commitment to success.

This framework also represents a strong and reliable platform for directing capital towards meaningful projects that serve our communities and environment. By aligning with global sustainability standards and ethical principles of Islamic finance, we ensure that every decision we make contributes to real, sustainable value. This framework provides greater transparency, disciplined fund management, and tangible progress towards our ESG goals.

We are proud of our role in enhancing the Kingdom of Bahrain’s vision for sustainability, and contributing to the formation of a sustainable financial system that is responsible and comprehensive, and compatible with the provisions of Islamic Sharia.”

For his part, Dr. Boutros Klink, CEO of Standard Chartered Bank Bahrain, said: “We are pleased to support Bahrain Islamic Bank in developing a sustainable financial framework that allows it to issue green, social and sustainable debt instruments in line with global standards. Through this framework, the bank has access to sustainable capital markets to finance projects that achieve tangible environmental and social benefits. As a sustainability structuring advisor, Standard Chartered Bank is proud to harness its global expertise to support the sustainable financing system in the Kingdom of Bahrain. Bahrain, and contribute to achieving its vision towards a more inclusive and flexible economy.”

While the sustainable corporate finance team at ISS Corporate Solutions expressed its pride in cooperating with Bahrain Islamic Bank to launch the first sustainable financial framework, which identifies projects eligible to use the proceeds represented in various environmental and social projects, such as green buildings, renewable energy, clean transportation, job generation, housing, and projects for access to basic services.

This collaboration with Bahrain Islamic Bank (BisB), the Islamic branch of National Bank of Bahrain (NBB), follows the successful launch of NBB’s first sustainable financial framework, which was also verified by ISS-Corporate. With the unveiling of this framework, Bahrain Islamic Bank demonstrates its commitment to mobilizing financing in accordance with global standards and Islamic finance values ​​to contribute to the transition to a low-carbon economy in Bahrain, achieving Bahrain Vision 2030, and the United Nations Sustainable Development Goals.

The launch of the Sustainable Finance Framework embodies Bahrain Islamic Bank’s commitment to providing responsible banking services, and also emphasizes its role in driving sustainable progress within the Kingdom and at the level of countries in the region.