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Bahrain Steel, a producer and global supplier of high-grade iron ore pellets, will receive a $450 million sustainability-linked loan (SLL) from a consortium of regional banks.
Bahrain Steel aims to embed sustainability into its business operations and, in addition to meeting its working capital requirements, will use the proceeds from this loan to build the world’s largest storage facility with rooftop solar panels. The proceeds will be allocated to capital investment for construction.
The SLL framework provides incentives for Bahrain Steel to go beyond its greenhouse gas emissions reduction obligations and facilitates the company’s transition to low-carbon operations.
We also encourage the company to develop implementation programs focused on climate change and environmental risks.
Aligned with Bahrain Steel’s ESG objectives
Meshali Al Judaimi, Chairman of Bahrain Steel, said: “Sustainability and social responsibility are core values at Bahrain Steel.
“Our partnership with the bank means a significant step forward in our ESG efforts. With this strategic financing, we will accelerate our efforts to significantly reduce our carbon footprint. “We can strengthen our commitment to sustainable practices in the steel industry.”
Mr. Al Judaymi said, “By adopting rigorous KPIs, we will not only set new standards for environmental management in the industry, but also accelerate the Bahraini government’s efforts towards a more sustainable future. ” he added.
“Our focus on training our employees on climate change and environmental risks confirms our dedication to building a more informed and responsible corporate culture.”
“This SLL has associated KPIs and improvement objectives, SPTs, built into the facility structure.
“This approach allows Bahrain Steel to meet the expectations of its key stakeholders, especially in the current era when more and more conscious consumers and investors are concerned about environmental, social and governance practices. ” said the company chairman.
Banks involved in the transaction
Mashreq Bank acted as the sole facility and sustainability coordinator. ABC Bank acted as facility agent, security agent and account bank, while Ahli United Bank was appointed as Murabaha investment agent.
ABC Bank, ENBD and Mashreq Bank jointly acted as mandated lead managers.
Arab Bank, Ahli United Bank, Gulf Bank, Kuwait Finance House and Khaleej Bank participated as joint lead managers.