nogaholding closes upsized murabaha facility of $2.2bn

The Oil and Gas Holding Company (nogaholding) has refinanced its $1.6 billion murabaha facility and upsized it to $2.2bn.

The new facility was structured as a dual-tranche (conventional and Islamic) sustainability-linked loan based on a secured overnight financing rate, with a maturity date of September 2026.

This is the company’s first sustainability-linked corporate financing facility, utilising sustainability KPIs related to green house gas (GHG) emission reduction as well as safety measures, including lost-time injury frequency rate.

This first-of-its-kind facility for nogaholding paves the way for sustainable funding in Bahrain, promoting ethical ESG-driven transactions within the energy sector and the region.

The company received strong participation from regional banks across Saudi Arabia, the UAE, Kuwait, Bahrain, and South Asia.

The facility was oversubscribed more than two times, with participation from 22 banks, making it the largest sustainability-linked loan facility in Bahrain and the region.

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

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

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




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