Bahrain's Oil and Gas Holding (nogaholding) has announced that it has secured a $200 million revolving credit facility from a banking syndicate led by Al Baraka Islamic Bank. The facility was structured as an Islamic Murabaha financing scheme.
The syndicate of lenders include Bahrain Islamic Bank (BisB), Khaleeji Commercial Bank and National Bank of Kuwait (NBK) – Bahrain.
This comes as nogaholding prepares to undergo a strategic transformation, moving from a traditional oil and gas holding company to a progressive and responsible energy company, under the leadership of His Highness, Shaikh Nasser bin Hamad Al Khalifa, Representative of His Majesty the King for Humanitarian Works and Youth Affairs, Chairman of nogaholding.
On the agreement, Group CEO Mark Thomas, said: "As an active contributor and growth catalyst in the local economy, nogaholding will continue engaging with leading financial institutions to accelerate the Kingdom’s energy strategy in line with the vision of His Majesty King Hamad bin Isa Al Khalifa and His Royal Highness Shaikh Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, for the sector."
"Seeking diverse financial solutions for nogaholding will help support the Company’s financial plans, and meet our mandates that are in line with the Kingdom’s Economic Vision 2030, and the goals set out by His Royal Highness the Crown Prince during COP26," he added.
Al Baraka Islamic Bank CEO Hamad Abdulla Al Oqab said: "We are delighted to sign this agreement with the main developer and investor in the Kingdom’s energy sector to manage one of the largest sharia-compliant renewable credit facilities in the sector."
"This step will grant nogaholding the flexibility in diversifying sustainable financing sources and applying best practices in managing financial assets and liabilities, while continuing its sound approach in managing working capital and enhancing the liquidity position to serve the development projects of the promising energy sector in the kingdom," stated Al Oqab.
Al Baraka Islamic Bank, through its unwavering belief in participation, mutual trust and strong relations with its partners, continues its relentless endeavors to provide quality banking products and financing solutions that positively impact the performance of its partners, he noted.
It also enables them to achieve their expansion and development ambitions, in a way that benefits the final outcome on the growth of the national economy and the development of promising economic sectors, he added.
Khaleeji Commercial Bank CEO Sattam Sulaiman Algosaibi said the partnership embodies the role assumed by the banking sector towards supporting Bahrain’s economy.
"This agreement will certainly contribute to strengthening the financial position of the company and will reflect on efforts exerted to maximise the contribution of one of the Bahraini economy’s most important components: the energy sector, in addition to being a clear indication of national banks’ keenness to work in the spirit of Team Bahrain with the aim to advance the Kingdom's economy by supporting this vital sector," he stated.
Algosaibi said since its inception, KHCB has been committed to actively contribute to all national efforts and endeavours aimed at promoting economic growth and meeting the aspirations of the kingdom’s wise leadership to develop various vital sectors by providing innovative banking solutions complaint with Sharia principles through the establishment of strategic partnerships with the public and private sectors".
BisB CEO Yaser Alsharifi said: "As a leading sharia-compliant financial institution in the kingdom, we remain firmly committed to continue to actively contribute to uplifting the local economy of Bahrain encouraging an upward trajectory of growth, as well as support the sustainable development of the energy sector at large."
"We are incredibly proud to participate in this initiative and support nogaholding, a company that plays a vital role in supporting Bahrain’s development efforts," he added.
NBK–Bahrain General Manager Ali Fardan said: "We are delighted and honoured to take part in supporting nogaholding’s financial plans which aim to contribute to the growth of Bahrain's energy sector in line with its economic Vision 2030."
"NBK Bahrain continues its commitment towards supporting major and strategic projects across the Kingdom of Bahrain and increasing its footprint in the Corporate Banking Sector within Bahrain through the support from NBK Group," he added.-TradeArabia News Service