Bahrain Steel secures a $450 million sustainability-linked loan, signifying their commitment to ESG principles. The loan aims to fund a groundbreaking stockyard shed with solar panels and enhance sustainability initiatives, driving carbon reduction and fostering a responsible corporate culture.
In a landmark announcement, Bahrain Steel, renowned for high-grade iron ore pellets, proudly reveals the successful syndication of a substantial $450 million sustainability-linked loan (SLL). This strategic move, spanning seven years, echoes the firm's unwavering dedication to fostering environmental, social, and governance (ESG) principles within its operational fabric.
The allocated funds from this impressive financial maneuver are earmarked for substantial purposes. Bahrain Steel intends to direct these resources towards capital expenditure (Capex) for erecting what is projected to be the world's largest stockyard shed, adorned with cutting-edge rooftop solar panels. Simultaneously, these funds will meet the company's crucial working capital requirements.
This pioneering initiative stands as a testament to Bahrain Steel's steadfast commitment to integrating sustainability at the core of its operational strategies. The loan framework, embedded with sustainability incentives, propels Bahrain Steel to surpass prescribed greenhouse gas (GHG) emission reduction targets. This move significantly drives the company's transition towards environmentally conscious, low-carbon operations.
Moreover, the SLL acts as a catalyst, encouraging Bahrain Steel to institute an extensive adoption program. This program will center on tackling climate change and mitigating environmental risks, fostering internal capacity building and cultivating a more informed and responsible corporate ethos.
The synergy behind this financial leap involves several key players in the financial realm. Mashreq assumes the pivotal role of the sole Facility & Sustainability Coordinator, while Bank ABC and Ahli United Bank undertake crucial positions as Facility Agent and Murabaha Investment Agent, respectively. The collaboration between these financial entities underscores a collective dedication to supporting sustainable initiatives in the steel industry.
Meshary Al-Judaimi, Chairman of Bahrain Steel, expressed profound gratitude for this strategic partnership, highlighting the company's commitment to sustainability and social responsibility. He emphasized the critical role of this financing in accelerating Bahrain Steel's pursuit of substantial carbon footprint reduction, aligning with Bahrain's broader sustainability aspirations.
Group Chief Executive Officer of Mashreq, Ahmed Abdelaal, reiterated the bank's dedication to assisting clients in their sustainability endeavors. He emphasized that such sustainable financing solutions reflect a growing demand from conscientious consumers and investors, promoting Bahrain Steel's commitment to environmental, social, and governance practices.
Bahrain Steel's monumental stride in securing a $450 million sustainability-linked loan attests to a pivotal paradigm shift within the steel industry. This strategic financing not only propels the company towards a more sustainable future but also underscores its role as a torchbearer in championing responsible corporate practices.