Bahrain Steel secures USD 450 mn green loan: Iron ore pellet producer Bahrain Steel has secured a USD 450 mn ESG-linked credit line from a consortium of banks — coordinated by UAE’s Mashreq Bank — to develop what it says will be the the world’s largest solar-powered stockyard shed in Bahrain, the company said. Bahrain Steel did not disclose information on the stockyard shed’s targeted capacity or the project’s timeline.

The loan will be used to implement other sustainable practices: Aside from the solar project, the loan will be used to meet the company’s working capital requirements, and will be tracked against a set of relevant key performance indicators and sustainable performance targets throughout the period, Zawya notes. The company says the loan’s framework incentivises it to go beyond mandatory corporate greenhouse gas emission reduction targets, financing the company’s transition toward lower carbon operations.

Partners: While Mashreq served as the facility and sustainability coordinator on the loan, Bank ABC acted as the facility and security agent and account bank, and Ahli United Bank served as the Murabaha investment agent. Bank ABC, Emirates NBD, and Mashreq acted as mandated lead arrangers, while Arab Bank, Ahli United Bank, Gulf Bank, Kuwait Finance House, and Khaleeji Bank served as joint lead arrangers.

REMEMBER- Bahrain Steel has been ramping up decarbonization investments: The company said last month it was launching three projects worth USD 250 mn to expand its local operations in the kingdom, including developing a solar energy plant to power its factories. The company is also teaming up with Essar Group to supply the latter’s USD 4.5 bn green steel project in Saudi Arabia with 4 mn tons of iron ore pellets annually, and is also partnering with Bahrain's Electricity and Water Authority on a 100 MW solar plant in the kingdom.

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