Bank ABC mints sustainable Saudi paper loan

Bank ABC mints sustainable Saudi paper loan

Bank ABC has secured the backing of Italian export credit agency Sace for a €24.9mn loan it has provided to a Saudi paper manufacturer. The proceeds of the loan to the Saudi Paper Manufacturing Company will be used to purchase machinery from Italian exporter Toscotec. Sace is providing a guarantee for two-thirds of Bank ABC’s ...

The post Bank ABC mints sustainable Saudi paper loan appeared first on Global Trade Review (GTR).Bank ABC has secured the backing of Italian export credit agency Sace for a €24.9mn loan it has provided to a Saudi paper manufacturer.

The proceeds of the loan to the Saudi Paper Manufacturing Company will be used to purchase machinery from Italian exporter Toscotec.

Sace is providing a guarantee for two-thirds of Bank ABC’s risk, a spokesperson for the Bahrain-headquartered lender says.

The deal is structured as sustainability linked. Under the arrangement, Saudi Paper must maintain third-party certifications such as from the Forest Stewardship Council, demonstrate increased use of recycled materials by its recycling subsidiary and, from 2025, begin improving water usage and greenhouse gas emissions.

Pricing on the five-year deal will move up or down depending on performance against the targets.

Bank ABC says it is the first time it has structured a