nogaholding successfully closes refinancing and upsizing of USD 1.6 bn Murabaha facility to USD 2.2 bn

Manama, May 10 (BNA) The Oil and Gas Holding Company B.S.C. The new facility is structured as a dual tranche (conventional and Islamic) sustainability linked loan based on a secured overnight financing rate (SOFR), with a maturity date of September 2026.

This is the company’s first sustainability-related institutional financing, which uses sustainability KPIs related to reducing greenhouse gas emissions (GHG) as well as safety measures, including the frequency of lost time injuries. This first-of-its-kind new financing facility paves the way for sustainable financing in the Kingdom of Bahrain, promoting ethical transactions based on the environment and environmental, social and corporate governance in the energy sector and the region.

nogaholding has garnered strong participation from regional banks across Saudi Arabia, UAE, Kuwait, Bahrain and South Asia. The facility has been oversubscribed more than twice, with the participation of 22 banks, making it the largest sustainability-related loan in Bahrain and the region.

Gulf International Bank (GIB) and Mashreq Bank PJSC (Mashreq) together acted as the mandated lead arrangers and bookrunners (IMLABs) for arranging the facility, besides serving as the sustainability coordinators. Al Ahli Bank of Kuwait – DIFC Branch, Gulf International Bank and Mashreq acted together as joint coordinators, authorized lead coordinators and arrangers for the transaction. GIB has also been appointed as the sole structural bank and global facility agent.

Commenting on the announcement, Nogaholding Group CEO Mark Thomas said: “As we continue to develop our energy strategy for the Kingdom of Bahrain, we are proud to set the standard as the largest sustainability-related refinancing in the history of the Kingdom of Saudi Arabia, and to set a precedent with our sustainability-related facility. double sided.”

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“We are pleased with the support we have received from banks across the region. With oversubscription more than twice, the participation of many financial institutions highlights our strong credit. The refinanced facility will allow nogaholding to cover the 2022 CAPEX program aimed at increasing the size and diversification of oil and gas assets and achieving goals aligned with the United Nations Sustainable Development Goals (SDGs) included in Bahrain’s Economic Vision 2030.” Added.

Jamal Al-Kishi, CEO of GIB, said: “We are delighted to have the opportunity to work with Oil and Gas Holding Company (“nogaholding”) on this historic transaction. The strong participation of the investors was a testament to their confidence in both the company and the Bahraini economy. The successful closing of this transaction, was Nogaholding’s commitment to the sustainability drive in the Kingdom of Bahrain. GIB is particularly honored to have partnered with nogaholding on this sustainability-based financing initiative.”

Ahmed Abdel-Aal, CEO of Mashreq Group, said: “As a leading regional financial institution with a global presence, Mashreq is keen to continue to play an active role in supporting the Kingdom of Bahrain as well as the sustainable energy development of the region. section. So we are proud to support our nogaholding as one of; The Joint Coordinators, Joint Bookkeepers, Joint Sustainability Coordinators and Authorized Lead Arrangers initially refinanced the $1.6 billion Murabaha facility and increased it to $2.2 billion. The loan underscores the commitment of non-owner companies to work within the broader framework of decarbonization and energy transition. This transaction also underscores the growing commitment by regional investors and financial institutions to finance sustainability related transactions. We believe that collaboration between financial institutions, governments and energy stakeholders is key to meeting the financing challenges of the region’s energy transition. nogaholding can play an important role in supporting diversification efforts in Bahrain as it looks to shift towards cleaner sources of energy. We look forward to deepening our relationship with Nogaholding and working with them on future strategic funding requirements. ”

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Tom Lind, Senior CEO of Al Ahli Bank of Kuwait – DIFC Branch, said: “The successful completion of this transaction, which was well received in regional loan markets, underscores the importance and position of Nogaholding as a major source in the Middle East. It also emphasizes the capabilities of regional banks to engage in sustainable financing solutions. We thank the transaction team at nogaholding and our colleagues at GIB and Mashreq Bank for their good cooperation.”

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