Bapco Energies Successfully Completes Amend and Extend of Existing $2.2 Billion Dual-Tranche Sustainability-linked Murabaha and Conventional Term Facility, with an Upsize to $2.5 Billion

Bapco Energies, the integrated energy Company leading the energy transition in the Kingdom of Bahrain, announced today the successful closing of its $2.2 billion dual-tranche Sustainability-linked Term facility. The transaction incorporates an additional $300 million green shoe option – bringing the total facility size to $2.5 billion.

Gulf International Bank and Mashreq acted as the Initial Mandated Lead Arrangers and Bookrunners, and Sustainability Coordinators. Gulf International Bank, Mashreq, and Al Ahli Bank of Kuwait (ABK) together acted as the amend and restate exercise Coordinators and Underwriters. Gulf International Bank acted as Facility Agent, Global Agent, and Murabaha Investment Agent.

The Sustainability-linked Facility was first announced in May 2022, and was recognized by multiple international awards. Bapco Energies received strong participation from 19 conventional and Islamic financial institutions across Bahrain, Saudi Arabia, the United Arab Emirates, and Kuwait.

Under the amended and restated facility, the maturity date has been extended from 2026 to 2030. Additionally, the sustainability-linked KPIs, covering emissions intensity and health and safety, have been amended to further align with best practices as well as the definitions of the International Association of Oil & Gas Producers (IOGP) and Bapco Energies’ newly issued Sustainability-linked Financing Framework.

The transaction was announced today in a signing ceremony attended by Bapco Energies’ Group CEO, Mr. Mark Thomas, Gulf International Bank’s (GIB) Group Wholesale Banking Head, Mr. Khaled Abbas, and Mashreq’s Group Head of International Banking, Mr. Tarek El Nahas, in addition to Al Ahli Bank of Kuwait’s (ABK), Executive Manager, Head of NPC & MNCs, Mr. Peter De Swart.

Commenting on this transaction, Group Chief Executive Officer of Bapco Energies, Mr. Mark Thomas, said: “We are delighted to reach this amend and restate agreement with our banking partners. As we progress in reshaping the energy landscape of the Kingdom, we remain committed to contributing to the national net-zero target by 2060. This amend and restate agreement demonstrates the trust of the investment community in our journey towards a low-carbon future.”

On this occasion, Chief Executive Officer of Gulf International Bank B.S.C. (GIB), Mr. Jamal Al Kishi, said: “GIB is proud to have supported Bapco Energies in extending this important facility as the company continues to lead the Kingdom of Bahrain’s transition to net zero. We are committed to working with our clients to ensure they have access to the funding required to progress this journey and, in particular, working with them to incorporate a greater level of green financing into their overall funding profile.”

From his side, the Group Chief Executive Officer of Mashreq, Mr. Ahmed Abdelaal, said: “Closing of this landmark transaction is an important milestone for the sustainable finance landscape in the Middle East. At Mashreq, we are proud to partner with Bapco Energies to support its critical role in leading the energy transition for the Kingdom of Bahrain. This Sustainability-linked facility further incentivizes the Group to accelerate its progress towards a cleaner and more sustainable future. This transaction showcases Bapco Energies’ and Mashreq’s dedication to ESG principles and sets a new standard for the industry and for companies in the GCC.”

Bapco Energies continues to expand its Sustainability-linked Financing as part of its energy transition efforts to ensure the prosperity of the Kingdom of Bahrain.