GIB closes first sustainability-linked syndicated loan

Bahrain-headquartered Gulf International Bank has recently closed a US$625 million sustainability-linked syndicated loan, in a deal that garnered a lot of commitments from international markets, causing it to be oversubscribed.

The facility was previously capped at $500 million, but total funds raised eventually reached US$1.1 billion, the Public Investment Fund-operated GIB indicated in a press release. 

Over 20 global investors from the US, Europe, the Middle East and Asia took part in the transaction. The deal and its structure incorporates environmental, social, and governance metrics related to reductions in carbon emissions, gender diversity and sustainability reporting. 

The SLL is a tangible embodiment of GIB’s focus on generating capital for investment in more sustainable economic landscape for its clients and stakeholders.

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

 “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,” said GIB’s Group CEO, Abdulaziz Al-Helaissi.