Business

HSBC arranges first 'green' trade finance facility for UAE's Lamprell

HSBC arranges first 'green' trade finance facility for UAE's Lamprell

Dubai: Even trade financing deals are getting a touch of ‘green’ to them.

HSBC has issued a $48 million green trade finance facility for the UAE-based project services company Lamprell. The funds will be used to support completion of its fabrication work on the Seagreen Offshore Wind Farm project off the coast of Scotland.

In the recent past, regional governments and institutions have launched green bonds and the like, which are essentially any funding created to ensure best environmental outcomes.

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“This transaction demonstrates the commercial viability of green finance in the Middle East for issuers beyond sovereigns, financial institutions and the largest multinational corporations,” said Daniel Howlett, HSBC’s Regional Head of Commercial Banking for the Middle East, North Africa and Turkey.

“Sustainable growth is more important than ever before for businesses that want to build back better from the COVID-19 pandemic.”

HSBC was the sole arranger for the innovative facility, which is also the first green guarantee in the MENA region.

It was in June last that Lamprell became a subcontractor on the Seagreen Offshore Wind Farm project, located near the Angus coastline in Scotland. The project involves building and installing 114 wind turbine generators. Lamprell was mandated to fabricate 30 of the 114 jackets and suction base foundations for the generators.