Home GCC Saudi Arabia HSBC arranges first green export credit agency loan for Saudi ministry The proceeds of the loan are being used to purchase buses from Germany for the kingdom’s public transport network by Zainab Mansoor July 27, 2020 Lender HSBC arranged a $258m export credit agency (ECA) loan for Saudi Arabia’s Ministry of Finance. HSBC acted as a mandated lead arranger (MLA), an original lender and the agent bank for the loan, which is the first Green ECA loan in Saudi Arabia. The proceeds of the loan are being used to purchase buses from Germany for the kingdom’s public transport network. The buses will help reduce the greenhouse gas emissions and air pollution as well as alleviate traffic congestion in Riyadh through a shift towards public transportation. The loan documentation underscores a commitment to report on the positive environmental benefits of the stipulated project. The use of proceeds and reporting features of the facility deem it compliant with the “Green Loan Principles”, published by the Loan Market Association on March 21, 2018, a statement read. The loan has also received support by the official ECA of the Federal Republic of Germany – Euler Hermes Aktiengesellschaft. Loans backed by ECAs are popular with regional borrowers as a means of diversifying their funding sources while securing attractive financing terms. Gareth Thomas, HSBC’s head of global banking, Middle East, North Africa and Turkey, said: “Saudi Arabia is embarking on one of the world’s most ambitious economic transformation programmes and by securing its first ever Green ECA financing it has once again demonstrated its regional leadership in debt markets. HSBC was delighted to play a part in another important milestone for the kingdom.” HSBC group, through its subsidiary and affiliate operations, is a prominent international banking and financial services provider in the kingdom. Tags Export Credit Agency Germany HSBC loan mandatory lead arranger Ministry of Finance public transport network Saudi Arabia 0 Comments You might also like Saudi Arabia’s PIF raises $1bn from stc Group stake sale Saudi Arabia replaces CEO overseeing $500bn NEOM mega project ACWA Power secures $238m for key Azerbaijan wind farm project PIF’s ROSHN shifts focus to multi-asset development in rebranding push