HSBC has opened the first green trade finance facility in the Middle East and North Africa region, raising $48 million for UAE-based Lamprell to fund the development of the Seagreen offshore wind farm project off the coast of Scotland.
HSBC was the sole organizer of the facility, which is also the first green guarantee in the MENA region.
“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.”Daniel Howlett, HSBC’s regional head of commercial banking for the Middle East, North Africa and Turkey (MENAT).
“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.”Christopher McDonald, CEO of Lamprell.
In June 2020, Lamprell became a subcontractor for the Seagreen offshore wind farm project in the North Sea, situated off the coast of Angus, Scotland. The project includes the construction and operation of 114 wind turbine generators. Lamprell was commissioned to produce 30 of the 114 jackets and the suction base for the generators.