Gulf International Bank (Bahrain) has finalized USD 625 million worth of a sustainability-linked loan (SLL). This syndicated sustainability loan is the first of its kind for a bank that is based in the Gulf state of Bahrain.
The deal is inclusive of environmental, social, and governance (ESG) metrics, and was partaken in by a versatile group of over 20 global investors from Europe, the United States, Middle East, and Asia.
Gulf International Bank closes SLL deal
The commitments towards the ESG defined sustainability loan reached USD 1.1 billion and was ‘substantially oversubscribed’. The Gulf International Bank stated that the commitments exceeded the preliminary amount of USD 500 million.
A statement released by the Gulf International Bank (GIB) stated that the contract was well received and that GIB decided to expand the transaction amount to USD 625 million owing to its high-interest rates.
The performance indicators of the loan are connected to carbon emission recession, sustainability reporting, and gender miscellany. The Gulf International Bank did not comment about the particulars associated with how the loan is to be designed.
The sustainability-linked bond attracted orders with a value of USD 1.1 billion. The original USD 500 million was increased to USD 625 million owing to solid demand.
The Gulf International Bank is the foremost Bahrain-based bank and the first Saudi financier to facilitate this funding that was sustainability-centric.
Some of the major book-runners and underwriter firms that lead the group of investors in the syndicated loan for major funding were First Abu Dhabi Bank, SMBC, HSBC, Société Générale, and Citi. The HSBC bank acted as the solitary sustainability arranger.
Saudi Arabia’s Public Investment Fund possesses 97.2% of the Gulf International Bank, according to the GIB website. The balance shares are possessed by the other GCC nations – Qatar, Oman, the United Arab Emirates, Bahrain, and Kuwait.