Strategic financing will enable the company to accelerate the reduction of its carbon footprint
Bahrain Steel, a subsidiary of Bahrain-based Foulath Group, has secured a $450 million sustainability-linked loan (SLL) from a consortium of banks in line with environmental, social, and governance (ESG) principles to build the world’s largest stockyard shed with rooftop solar panels.
The loan will be tracked against a set of relevant key performance indicators (KPIs) and ambitious sustainable performance targets (SPTs) throughout its seven-year tenure, Mashreq, the sole facility and sustainability coordinator for the loan, said in a press statement.
The proceeds from this loan will also be used to meet working capital requirements.
The SLL’s framework incentivises Bahrain Steel to exceed mandatory greenhouse gas (GHG) emissions reductions, facilitating the company’s transition toward lower carbon operations.
Meshary Al-Judaimi, Chairman of Bahrain Steel, stated that this strategic financing enables the company to accelerate its efforts toward significant carbon footprint reduction and reinforces its commitment to sustainable practices in the steel industry.
Source: zawya
