The Saudi British Bank (SABB) acted as one of the mandated lead arrangers on the SR14.12 billion ($3.76 billion) financing raised to fund the Red Sea project, and its affiliate HSBC served as a “green” loan coordinator on the transaction. Through this credit facility, SABB is demonstrating its commitment to environmental, social, and governance (ESG) principles in the Kingdom.
Lubna Olayan, chair of SABB, said: “We’re delighted to help The Red Sea Development Co. (TRSDC) set such an important example for placing environmental considerations at the heart of a major development. As the Kingdom’s most international bank, we have a unique opportunity to bring new banking capabilities such as green loans to Saudi Arabia. Finding new ways to help environmentally friendly, sustainable projects is an important part of how our newly combined bank can play a bigger role in the Kingdom’s sustainable development.”
She added: “SABB’s role as lead arranger in the first riyal-denominated green finance credit facility further cements our commitment to supporting the sustainability objectives under Vision 2030.”
“This first-ever Saudi riyal-denominated LMA Green Loan Principles-compliant green loan in Saudi Arabia will pave the way for other borrowers to raise financing in a ‘green’ format, and help develop the local sustainable lending practices. This plays into the ambition to create a sustainable future in line with the Saudi Vision 2030, focusing on social and environmental sustainability initiatives and the Financial Sector Development Program objectives for the Kingdom. HSBC is committed to supporting clients transition to a low-carbon, sustainable economy,” said Rajiv Shukla, CEO of HSBC Saudi Arabia.
“ESG and sustainability are at the heart of SABB’s five-year strategy, and we look forward to supporting and launching new projects that help propel the Kingdom toward a more sustainable future.”