Oman Shipping Company, a member of ASYAD Group, and Standard Chartered Bank have announced the bank’s first sustainable financing deal in the Middle East worth $35 million.

The agreement covers two ultramax dry bulk vessels, the 63,500 dwt sisterships Jabal Al Mish and Jabal Shams, delivered by China’s Zhoushan Changhong Shipyard respectively in August and September 2019.

This sustainable financing agreement is the first of its kind in Oman and a first for Standard Chartered Bank in the Middle East. The 8-year facility is linked to key sustainability targets in line with United Nations sustainable development goals and the credit margin under the facility will be adjusted based on Oman Shipping Company’s progress against sustainable targets, said StanChart in a press release.

The signing ceremony took place at Oman Shipping Company’s headquarters and was attended by senior executives from Standard Chartered Oman, ASYAD Group and Oman Shipping Company.

The signing is a further indication of the Company and ASYAD Group’s commitment to leading sustainability best practices. Standard Chartered Bank continues to support economic growth in Oman, and this sustainable deal reaffirms the Bank’s clear commitment to environmental protection.

Said al Mawali, Chief Executive Officer, Oman Shipping Company and Oman Drydock Company, said: “This most recent deal with SCB will support Oman Shipping Company’s operational expansion by further strengthening and increasing our capacity within a growing fleet. We are particularly pleased with the sustainability component of the agreement, a significant first for the Sultanate and the shipping industry in the region. We are determined to drive sustainability in our operations and supply chains, and we feel this agreement is aligned to who we are as a Company, ASYAD Group, and our Company values. As we continue to lead the direction of shipping regionally, we look forward to others following, by embracing more ethical financing agreements.

Hussain bin Ghalib al Yafai, Chief Executive Officer, Standard Chartered Bank Oman said: “Standard Chartered are truly pleased to bring the global best practice of sustainable finance to the Sultanate of Oman alongside our trusted partner, ASYAD. Standard Chartered has served the Omani community, furthering their economic growth, for more than 50 years and we are proud to support their latest commitment to environmental protection. This deal gives us the opportunity to work across teams globally to propose the most optimal and innovative financing solutions for Oman Shipping Company.”

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