Int’l banking syndicate to provide gov’t with USD 2 bn Islamic + ESG loan
A syndicate of 10 regional and international banks are providing the USD 2 bn loan the Madbouly government is raising to finance green projects and plug budget shortfalls, Al Shorouk reports, citing unnamed sources. The facility will be divided into a USD 1 bn Islamic financing tranche and a USD 1 bn ESG tranche set to target green projects under the Finance Ministry’s green financing framework.
Banks reportedly participating: Emirates NBD, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Mashreq Bank, Bank ABC, National Bank of Kuwait, Ahli United Bank of Kuwait, Al Ahli Bank of Kuwait and Italy’s Intesa Sanpaolo Bank.
This facility is the second loan with an Islamic financing component the government has secured this year, after closing a USD 500 mn Islamic loan in September as part of a USD 2 bn package with regional and international banks to plug budget shortfalls during the COVID-19 crisis.