Linklaters advises on the largest ever sustainability-linked loan in Bahrain

Linklaters advised Bahrain’s state oil company, The Oil and Gas Holding Company B.S.C. (c) (nogaholding), on its first sustainability-linked loan, a refinancing and upsizing of its USD1.6bn Murabaha Facility to USD2.2bn. The new facility was structured as a dual-tranche (conventional and Islamic) loan employing Day 1 Secured Overnight Financing Rate mechanics, with a maturity date of September 2026. This successful refinancing marks the largest sustainability-linked loan in Bahrain and the Middle East region.

As the company’s first sustainability-linked corporate financing facility, it utilises KPIs related to greenhouse gas emission reduction as well as safety measures. The proceeds will be used to expand and diversify nogaholding’s oil and gas assets to ensure it aligns with the United Nations Sustainable Development Goals featured in the Bahrain Economic Vision 2030.

The transaction was led by Linklaters’ banking and finance partner Omar El Sayed, with support from banking and finance managing associate Dinush Wickremanayake.

Banking and finance partner Omar El Sayed, commented, “Linklaters’ well-established Islamic finance practice is renowned for advising on complex transactions and has worked on many “firsts” in the Islamic finance industry. We are honoured to have assisted nogaholding on this landmark transaction and to have played a part in the wider development of ESG-driven transactions in the Middle East.”

Group chief executive officer of nogaholding, Mark Thomas, commented, “As we continue to develop our energy strategy for the Kingdom of Bahrain, we are proud to have set the benchmark as the largest sustainability linked refinance in the history of the Kingdom, and to set a precedent with our dual-tranche sustainability-linked facility.”