Gulf International Bank closes $625million sustainability-linked syndicated loan

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GIB is the first majority Saudi-owned bank to close the SLL deal.
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  • The deal makes it the first majority Saudi-owned bank to close such a facility.
  • The deal was oversubscribed by more than two times with $1 billion commitments from 20 global investors.

Gulf International Bank (GIB) said on Sunday that it has closed a $625 million sustainability-linked syndicated loan (SLL), making it the first Bahrain-headquartered bank and the first majority Saudi-owned bank to close such a facility.

The bank said the deal was substantially oversubscribed with commitments exceeding the initial facility amount of $500 million by more than two times, reaching $1.1 billion.

Given the high interest, GIB decided to upsize the facility amount to $625 million, the bank said.

A diversified group of more than 20 global investors from the US, Europe, the Middle East and Asia participated in the deal that incorporates Environmental, Social and Governance (ESG) metrics related to reductions in carbon emissions, gender diversity and sustainability reporting.

Citibank, First Abu Dhabi Bank, HSBC Bank Middle East Limited, Sumitomo Mitsui Banking Corporation and Société Générale acted as Initial Mandated Lead Arrangers and Bookrunners on the transaction. HSBC acted as the sole Sustainability Coordinator.

GIB is owned by the governments of the Gulf Cooperation Council countries, with Saudi Arabia’s Public Investment Fund being the principal shareholder.

Abdulaziz Al-Helaissi, GIB’s Group CEO, said, “We’re delighted to close this landmark facility and are proud of the opportunity to highlight GIB’s long-term strategy and commitment to sustainable finance and investing.

“As a pioneering bank, it is important for us to be at the forefront with new instruments that enable us and our clients to transact more sustainably.”

Jamal Al Kishi, CEO of GIB B.S.C, added, “The success of the loan shows the growing commitment on the part of investors and borrowers to making greater social and environmental contributions.”

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