Bahrain Steel, a producer and supplier of iron ore pellets, has announced the syndication of a $450 million sustainability-linked loan (SLL), spanning seven years.

Proceeds from the loan will be directed towards capital expenditure for constructing the world’s largest stockyard shed with rooftop solar panels, in addition to fulfilling working capital requirements.

According to a statement, the SLL’s framework aims to incentivise Bahrain Steel to exceed mandatory greenhouse gas (GHG) emissions reductions, facilitating the company’s transition towards lower carbon operations. The SLL will further incentivise the company to roll out an adoption programme focused on climate change and environmental risks, while bolstering internal capacity building.

Mashreq acted as the sole facility and sustainability coordinator, Bank ABC served as the facility agent, security agent, and account bank, while Ahli United Bank was appointed as the Murabaha Investment Agent.

Bank ABC, ENBD, and Mashreq jointly acted as Mandated Lead Arrangers, while Arab Bank, Ahli United Bank, Gulf Bank, Kuwait Finance House, and Khaleeji Bank joined as Joint Lead Arrangers.

(Writing by Bindu Rai, editing by Brinda Darasha)