Offshore wind foundations fabricator Lamprell Energy has secured $48m via the first green trade finance facility in the Middle East, set up by HSBC.
The bank has raised $48m for UAE-based Lamprell to support execution of its fabrication work on the 1075MW Seagreen offshore wind farm project off Scotland.
HSBC was the sole arranger for the facility, which is also the first green guarantee in the MENA region.
HSBC regional head of commercial banking for the Middle East, North Africa and Turkey (MENAT), Daniel Howlett, said: “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.”
Lamprell CEO Christopher McDonald said that Lamprell expects renewable energy projects to comprise an increasingly large percentage of its revenue, so it is important for the company to have “access to this type of financing”, which is not only aligned to Lamprell’s 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” McDonald said.
In June 2020, Lamprell became a subcontractor on the Seagreen offshore wind farm project in the North Sea, 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.
Lamprell approached HSBC for project-specific trade financing in preparation for its role on the Seagreen project.
HSBC created a bespoke green facility comprising guarantees, import loans and documentary credits.