Manama, Bahrain – Bahrain Steel, a leading producer and global supplier of high-grade iron ore pellets, Monday announced the syndication of a $450 million Sustainability-Linked Loan (SLL).
In a statement, the company said the proceeds from this loan will be directed towards CAPEX for constructing the world’s largest stockyard shed with rooftop solar panels, in addition to fulfilling working capital requirements.
The transaction, spanning seven years, “is strategic financing initiative “illustrates Bahrain Steel’s drive to incorporate sustainability within its operations and underscores the company’s unwavering dedication to Environmental, Social, and Governance (ESG) principles”.
The SLL’s framework incentivizes Bahrain Steel to exceed mandatory greenhouse gas (GHG) emissions reductions, facilitating the company’s transition toward lower carbon operations.
Moreover, the SLL is incentivizing the company to roll out an adoption program focused on climate change and environmental risks, bolstering internal capacity building for a more informed and responsible corporate culture.