Bank ABC, Saudi Paper Ink 24.9 Million Euro Credit Facility
Bank ABC (Arab Banking Corporation B.S.C.) successfully closed a 24.9 million euro sustainability linked credit facility for Dammam-headquartered Saudi Paper Manufacturing Company, a leading tissue paper manufacturer. The financing is backed by SACE, the Italian export credit agency, and is spread across a five-year term, alongside order notes.
The agreement was signed at the lender’s Manama head office by Bank ABC’s Amr ElNokaly, Group Head of Wholesale Banking, and Michael Davis, Group Head of Corporates, with SPM Board Member Abdulaziz Al Meshal, and CEO Yousseri El Bishry. The ceremony was attended by other senior officials from both entities. This is Bank ABC’s first bilateral sustainability-linked ECA transaction, globally.
Commenting on the transaction, ElNokaly says, “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.”
Expressing his appreciation to the Bahrain bank’s role in financing its latest major project, SPM’s Al Meshal says, “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. 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.”
Bank ABC’s Davis adds, “We are proud to support Saudi Paper’s endeavour towards recycling and the circular economy.”
Working with Bank ABC’s team in Italy and the Middle East for a better understanding of the regional clients’ needs, Antonio Bartolo, Regional Director, SACE, comments, “It was a pleasure working alongside Bank ABC in this strategic transaction. 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, says, “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.
