Bahrain Steel Inks Agreement with a Consortium of Banks for a $450 Million Sustainability-Linked Loan

Bahrain Steel Inks Agreement with a Consortium of Banks for a $450 Million Sustainability-Linked Loan

Bahrain Steel, a leading producer and global supplier of high grade iron ore pellets, announced today the successful syndication of a $450 million Sustainability-Linked Loan (SLL). This milestone transaction, spanning seven years, underscores the company’s unwavering dedication to Environmental, Social, and Governance (ESG) principles. It also highlights the collective commitment of the lending consortium toward fostering tangible environmental impacts in tandem with their clients. The proceeds from this loan will be directed towards CAPEX for constructing the world’s largest stockyard shed with rooftop solar panels, in addition to fulfilling working capital requirements. This strategic financing initiative illustrates Bahrain Steel’s drive to incorporate sustainability within its operations.  The SLL’s framework incentivizes Bahrain Steel to exceed mandatory greenhouse gas (GHG) emissions reductions, facilitating the company’s transition toward lower carbon operations. Moreover, the SLL is incentivising the company to roll out an adoption program focused on climate change and environmental risks, bolstering internal capacity building for a more informed and responsible corporate culture.Mashreq acted as the sole Facility & Sustainability Coordinator, Bank ABC will be serving as the Facility Agent, Security Agent, and Account bank, while Ahli United Bank was appointed as the Murabaha Investment Agent.Bank ABC, ENBD, and Mashreq jointly acted as