MANAMA, BAHRAIN: Gulf International Bank (GIB) has successfully closed a $625 million sustainability-linked syndicated loan (SLL), making GIB the first Bahrain-headquartered bank and the first majority Saudi-owned bank to close such a facility.
The deal was well received in the international markets and substantially over-subscribed with commitments exceeding the initial facility amount of USD 500 million by more than two times, reaching USD 1.1 billion. Given the high interest, GIB decided to upsize the facility amount to USD 625 million.
A diversified group of more than 20 global investors from the US, Europe, the Middle East and Asia participated in the landmark transaction that incorporates Environmental, Social and Governance (ESG) metrics related to reductions in carbon emissions, gender diversity and sustainability reporting. The SLL reflects GIB’s focus on mobilising capital in support of a more sustainable economic landscape for its clients and stakeholders.
Citibank, First Abu Dhabi Bank, HSBC Bank Middle East Limited, Sumitomo Mitsui Banking Corporation and Société Générale acted as Initial Mandated Lead Arrangers and Bookrunners on the syndicated loan transaction. HSBC acted as the sole Sustainability Coordinator.
GIB’s Group CEO, Abdulaziz Al-Helaissi said, “We’re delighted to close this landmark facility and are proud of the opportunity to highlight GIB’s long-term strategy and commitment to sustainable finance and investing. As a pioneering bank, it is important for us to be at the forefront with new instruments that enable us and our clients to transact more sustainably.”
Jamal Al Kishi, CEO of GIB B.S.C, added, “The success of this syndicated loan backed by leading international banks is testament to the strong support and interest of global financial institutions in GIB and our position as one of the leading banking institutions in the Middle East. Moreover, it also shows the growing commitment on the part of investors and borrowers to making greater social and environmental contributions.”