Our friends at Mashreq are handing Gargash Group a sustainability-linked facility, estimated to be one of the largest in the UAE’s automotive sector, according to a statement (pdf). The facility has a hybrid structure, combining both revolving credit and term loans, a Mashreq representative told EnterpriseAM in an emailed response. There’s no publicly available information about the exact size of the facility.

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IN CONTEXT- The SLF forms part of a wider energy transformation plan being rolled out across Gargash’s network, including investments in solar energy infrastructure and improvements in overall energy efficiency. The automotive distributor had last year received its debut green loan from Mashreq to fund the company’s solar installations across 25 sites, in addition to other potential energy efficiency projects.

The facility directly links borrowing terms to the achievement of specific ESG goals, including reductions in carbon emissions, increased investment in employee training and development, and more sustainable practices throughout the supply chain. “This agreement enables Gargash Group to accelerate its sustainability initiatives while setting a benchmark for the automotive sector and the wider business community in the region,” said Marwan Galadari, executive VP & head of trading division at Mashreq.

This agreement marks Mashreq Bank’s second sustainability-linked financing inless than amonth, and brings the lender’s total sustainable finance transactions in the sector to AED 2.8 bn in 2025, the statement said. Mashreq aims to provide some USD 30 bn in sustainable financing by 2030, the statement reads.

About Gargash: Gargash Group operates across four key sectors including automotive, real estate, financial services, and F&B. The Group offers integrated services and has introduced leading names including Mercedes-Benz, SIXT, and Alfa Romeo to the UAE.

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