Manama, Bahrain: Bank ABC (Arab Banking Corporation B.S.C) has successfully closed a EUR 24.9 million sustainability linked credit facility (the “Facility”) for Saudi Paper Manufacturing Company, a listed manufacturing entity (Tadawul: SPM 2300) The financing is backed by the Italian Export Credit Agency support from SACE, and the exposure is spread across a term of five years, alongside order notes.
Bank ABC hosted a signing ceremony at its Head Office in Bahrain on January 17, 2024. In attendance were Bank ABC’s Group Head of Wholesale Banking, Mr. Amr ElNokaly and Group Head of Corporates, Mr. Michael Davis, with SPM’s Board Member, Mr. Abdulaziz Raed Al Mashal and CEO, Mr. Yousseri Abdul Hamid El-Bishry alongside other senior officials from both entities. This is Bank ABC’s first bilateral sustainability-linked ECA transaction, globally.
Commenting on the transaction,
Mr. ElNokaly said: “Bank ABC is delighted to have arranged a Sustainability-linked credit facility supported by SACE ECA via our office in Milan, to help Saudi Paper obtain the best machinery for its expansion. The transaction is testament to our commitment towards the growing manufacturing sector in the region and we look forward to serving SPM as their banking partner.”
Saudi Paper expressed its heartfelt appreciation to Bank ABC for its instrumental role in financing its latest major project (PM5). On his part,
Mr. Al Mashal said “Bank ABC’s competitive interest rates and unwavering support have positioned Saudi Paper Group for continued success and strengthened its commitment to driving the Kingdom’s industrial growth. The professionalism and efficiency demonstrated by Bank ABC throughout the financing process have been commendable. Thank you, Bank ABC, for your exceptional service and support. We are truly grateful for the strategic partnership that we have developed with Bank ABC and look forward to a continued collaboration in future endeavours .”
During the ceremony, Mr. Davis thanked SPM for trusting Bank ABC and for the opportunity to deliver this innovative transaction and noted that the ECA backed facility is a perfect example of how Bank ABC works across its network, in this case, reaching out to its branch in Italy, to deliver on innovative solutions for its customers. “...and we are proud to support Saudi Paper’s endeavour towards recycling and the circular economy,” he added. SACE, the Italian Export Credit Agency, was thrilled to work with Bank ABC’s team in Italy and the Middle East, to better understand the regional clients’ needs and extend their support.
To this effect,
Antonio Bartolo, Regional Director of SACE commented “It was a pleasure working alongside Bank ABC in this strategic transaction. The Paper Industry is an Italian excellence and SACE’s role is to help and support Italian companies in gaining recognition and generating additional business opportunities in strategic markets such as Saudi Arabia.”
Alessandro Mennucci, CEO of Toscotec, the Italian company that will supply the new machinery, comments, “Toscotec is pleased to support SPM both as their technology supplier and assisting in the achievement of the credit facility deal, which is an important step for the successful implementation of this project”.
The loan amount is intended to support SPM’s expansion plan by funding the procurement of state-of-the-art machinery from Toscotec, which will add efficiencies of scale and scope to SPM’s business in years to come.
