Bapco Energies receives major international awards

Bapco Energies received two international awards in recognition for its first sustainability-linked corporate financing facility and contributions to both ESG and the Islamic finance sector.

The company won for the ‘Best Islamic Finance Facility’, during the 15th edition of the EMEA Annual Achievement Awards 2022 and ESG Loan Deal of the Year from the GFC Media Group at their annual Bonds, Loans & Sukuk Middle East Awards.

The awards follow Bapco Energies successful refinancing of its $1.6 billion Murabaha Facility and upsizing it to $2.2bn. The new facility, the first of its kind for Bapco Energies and the largest in sustainability-linked finance in Bahrain, was structured as a dual-tranche (conventional and Islamic) sustainability-linked loan.

The transaction demonstrated high investor confidence in Bapco Energies credit and sustainability story, with interest from international, regional, and local banks leading to an oversubscription of more than two times.

The awards demonstrate the great potential for ethical ESG and sustainability-driven transactions and continued growth in sustainable funding across the kingdom and the region.

Hailing the company’s dual achievement at the awards ceremonies, Bapco Energies Group chief executive Mark Thomas said: “We are deeply honoured to have been awarded the Best Islamic Finance Facility and ESG Loan Deal of the Year. These two accolades are a testament to the confidence in our strategy and the growth seen across the company. Bapco Energies continues to drive forward by adopting the best practices across sustainable financing, aligning with the kingdom’s Sustainable Development Goals and Bahrain’s Economic Vision 2030.”

The dual-tranche sustainability-linked loan was based on a Secured Overnight Financing Rate with a maturity date of September 2026.

Gulf International Bank (GIB) and Mashreq Bank together acted as the initial mandated lead arrangers and bookrunners for arranging the facility, along with being the sustainability co-ordinators.

Al Ahli Bank of Kuwait - DIFC Branch, GIB, and Mashreq together acted as joint co-ordinators, the initial mandated lead arrangers and underwriters for the transaction.

GIB was also appointed as the sole structuring bank and the global facility agent.

The bookrunners were Mashreq and GIB, Linklaters was the legal adviser to the borrower, and Norton Rose Fulbright served as the legal adviser to the joint lead managers.




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