Saudi Arabia raises groundbreaking $266mln green ECA financing

The financing will cover the procurement of 842 buses to Saudi Arabia

  
Image used for illustrative purpose. Magnifying glass and banknote Saudi Arabia.

Image used for illustrative purpose. Magnifying glass and banknote Saudi Arabia.

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Saudi Arabia’s Ministry of Finance (MoF), represented by the National Debt Management Center (NDMC), raised approximately a 1 billion Saudi riyals ($266.65 million) green Export Credit Agency (ECA) financing.

Raising a green loan with export credit agencies is the first of its kind in Saudi Arabia.

MoF said in a statement that the financing will cover the procurement of 842 German-made buses for King Abdulaziz Public Transport Project (Riyadh Buses) in Saudi Arabia.

Fahad Al-Saif, president of NDMC, said that the ECA-backed financing has been used for the first time by the Ministry through German Export Credit Agency “Euler Hermes”, with two international banks (in US Dollar); for the purpose of supplying German-made buses.

HSBC said in a statement on Sunday that they acted as Mandated Lead Arranger (MLA), an original lender and the agent bank for the kingdom’s first green ECA loan.

(Writing by Gerard Aoun; editing by Seban Scaria)

(gerard.aoun@refinitiv.com)

#SAUDI #FINANCE #GREEN #EXPORT #FINANCIALSERVICES

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