Bapco Energies amends, extends $2.2 billion dual-tranche Sustainability-linked Murabaha 


Manama, Nov. 28 (BNA):  Bapco Energies, the integrated energy Company leading the energy transition in Bahrain, announced the successful closing of its $2.2 billion dual-tranche Sustainability-linked Term facility. The transaction incorporates an additional $300 million green shoe option – bringing the total facility size to $2.5 billion.


The transaction was announced today in a signing ceremony attended by Mark Thomas, CEO of Bapco Energies’ Group; Khaled Abbas, Banking Head of Gulf International Bank’s (GIB) Group Wholesale; Tarek El Nahas, Head of International Banking at Mashreq Group, and Peter De Swar, Executive Manager, Head of NPC & MNCs at Ahli Bank of Kuwait’s (ABK).


Gulf International Bank and Mashreq acted as the Initial Mandated Lead Arrangers, Bookrunners, and Sustainability Coordinators. Gulf International Bank, Mashreq, and Al Ahli Bank of Kuwait (ABK) served as the amend and restate exercise Coordinators and Underwriters. Gulf International Bank acted as Facility Agent, Global Agent, and Murabaha Investment Agent.


The Sustainability-linked Facility was first announced in May 2022 and was recognised by multiple international awards. Bapco Energies received strong participation from 19 conventional and Islamic financial institutions across Bahrain, Saudi Arabia, the United Arab Emirates, and Kuwait.


Under the amended and restated facility, the maturity date has been extended from 2026 to 2030.


The sustainability-linked KPIs, covering emissions intensity and health and safety, have been amended to further align with best practices as well as the definitions of the International Association of Oil & Gas Producers (IOGP) and Bapco Energies’ newly issued Sustainability-linked Financing Framework.

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Bapco Energies’ Group CEO expressed his appreciation for reaching this amend and restating the agreement with the other banking partners.


“As we progress in reshaping the energy landscape of the Kingdom, we remain committed to contributing to the national net-zero target by 2060. This amends and restate agreement demonstrates the trust of the investment community in our journey towards a low-carbon future,” he added.


Jamal Al Kishi, Chief Executive Officer of Gulf International Bank B.S.C. (GIB), affirmed his commitment to ensuring access to the funding required and incorporating a greater level of green financing into their overall funding profile.


Ahmed Abdelaal, Group Chief Executive Officer of Mashreq, said that closing this landmark transaction is an important milestone for the sustainable finance landscape in the Middle East.


“We are proud to partner with Bapco Energies to support its critical role in leading the energy transition for the Kingdom of Bahrain. This Sustainability-linked facility further incentivizes the Group to accelerate its progress towards a cleaner and more sustainable future. This transaction showcases Bapco Energies’ and Mashreq’s dedication to ESG principles and sets a new standard for the industry and for companies in the GCC,” he added.







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