We show you our most important and recent visitors news details HSBC arranges inaugural green ECA loan for Ministry of Finance in the following article
Hind Al Soulia - Riyadh - Saudi Gazette report
JEDDAH — HSBC, one of the largest banking and financial services institutions in the world, recently arranged a $258 million export credit agency (ECA) loan for Saudi Arabia’s Ministry of Finance, which is the first for the Kingdom.
HSBC acted as a mandated lead arranger (MLA), an original lender and the agent bank for the loan.
The proceeds of the loan are being used to purchase buses from Germany for the kingdom’s public transport network.
The buses will help reduce greenhouse gas emissions and air pollution as well as ease traffic congestion in the capital city of Riyadh through a shift toward public transportation.
The loan documentation confirms a commitment to report on the positive environmental benefits of the stipulated project.
The use of proceeds and reporting features of the facility deems it compliant with the “Green Loan Principles”, published by the Loan Market Association on March 21, 2018, a statement read.
The loan has also received support from the official ECA of the Federal Republic of Germany – Euler Hermes Aktiengesellschaft.
Loans backed by ECAs are popular with regional borrowers as a means of diversifying their funding sources while securing attractive financing terms.
Gareth Thomas, HSBC’s head of global banking, Middle East, North Africa and Turkey, said: “Saudi Arabia is embarking on one of the world’s most ambitious economic transformation programs and by securing its first ever Green ECA financing it has once again demonstrated its regional leadership in debt markets. HSBC was delighted to play a part in another important milestone for the Kingdom.”
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