HSBC has issued a trade finance facility, raising $48 million for UAE-based Lamprell to support work on the Seagreen Offshore Wind Farm project off the coast of Scotland.
HSBC, the sole arranger for the facility, said it is the first green guarantee in the Middle East and North Africa region. The bespoke green facility comprises guarantees, import loans and documentary credits.
Daniel Howlett, HSBC’s regional head of Commercial Banking for the Middle East, North Africa and Turkey (MENAT), said: “This transaction demonstrates the commercial viability of green finance in the Middle East for issuers beyond sovereigns, financial institutions and the largest multinational corporations. Sustainable growth is more important than ever before for businesses that want to build back better from the COVID-19 pandemic and HSBC is proud to be leading the development of the green finance market in the Middle East.”
Christopher McDonald, Chief Executive Officer of Lamprell, added: "We expect renewable energy projects to comprise an increasingly large percentage of our revenue so it is important for us to have access to this type of financing, which is not only aligned to our green agenda but is also structured efficiently. It is vital that banks and corporates work together closely to further deepen the green finance market in the Middle East, supporting the global and regional transition to a low-carbon future.”
Publicly listed on the London Stock Exchange, Lamprell is a provider of diversified engineering, construction and contracting services to the onshore and offshore renewables, oil and gas energy industries.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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