Bahrain’s state oil company refinances loan in $2.2 billion deal

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Bahrain’s Oil and Gas Holding Company (nogaholding) has refinanced an existing $1.6 billion loan, increasing its size to $2.2 billion, it said in a statement.

The dual-tranche loan, which will mature in September 2026, is the company’s first sustainability-linked loan and was twice oversubscribed, nogaholding said. It comprises an Islamic and a conventional tranche.

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Gulf International Bank (GIB) and Mashreq were mandated lead arrangers, bookrunners and sustainability coordinators for the deal. Al Ahli Bank of Kuwait’s Dubai branch joined them as a third joint coordinator.

Reuters reported in February that nogaholding hired GIB and Mashreq to refinance the loan.

Nogaholding said the loan set a benchmark as the largest sustainability-linked loan in Bahrain and the region’s history, with 22 banks participating.

“The refinanced facility will allow nogaholding to cover its CAPEX program for 2022 aimed at increasing scale and diversification of its oil and gas assets and achieving goals that align with the United Nations Sustainable Development Goals (SDGs) included in the Bahrain Economic Vision 2030,” nogaholding CEO Mark Thomas said.

Nogaholding said the deal attracted “strong participation” from local banks as well as lenders in Saudi Arabia, the United Arab Emirates, Kuwait and South Asia.

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