Launch Partners

Tuesday, June 18, 2024

Launch Partners

nogaholding refinances Islamic facility into ESG facility

BAHRAIN: The Bahraini state-owned Oil and Gas Holding Company, also known as nogaholding, has successfully refinanced its US$1.6 billion Murabahah facility.

The facility was upsized to US$2.2 billion and structured to be dual-tranched (with an Islamic portion) and sustainability-linked. It is also based on the secured overnight financing rate and is set to mature in September 2026.

A first for nogaholding, the company hopes that the sustainability-linked corporate financing facility, which employs key performance indicators such as greenhouse gas emission reduction and lost-time injury frequency rate, will pave the way for sustainable funding in Bahrain.

A total of 22 banks from Saudi Arabia, the UAE, Kuwait and South Asia as well as local banks participated in the transaction, which was oversubscribed more than two times. It is touted as the largest sustainability-linked loan facility in Bahrain and the region.

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