NBB, Bapco Energies for ESG linked interest rate swap

TDT | Manama                                                        

The Daily Tribune – www.newsofbahrain.com

The National Bank of Bahrain (NBB) has collaborated with Bapco Energies as hedge coordinators to carry out the first ESG-linked interest rate swap in Bahrain.

The announcement was made in the presence of Dr. Mohammed bin Mubarak bin Daina, Minister of Oil and Environment, Special Envoy for Climate Affairs, NBB Group Chief Executive Officer, Usman Ahmed, and Group Chief Executive Officer of Bapco Energies, Mark Thomas, at COP28, the 2023 United Nations Climate Change Conference, which is currently taking place in Dubai, UAE.

The ESG-Linked Interest Rate Swap hedges part of Bapco Energies' interest rate exposure and links the hedged rate to certain sustainability-based key performance indicators (KPIs). This will support Bapco Energies in strengthening its sustainability efforts while managing risks arising from shifts in interest rates.

NBB Group Chief Executive Officer, Usman Ahmed, said: “By facilitating the first ESG-linked interest rate swap in the Kingdom, we have achieved a new milestone that reflects our position as a leading financial institution.” Group Chief Executive Officer of Bapco Energies, Mark Thomas, said: “‘Bapco Energies’ partnership with NBB on this rate swap underscores our commitment to embedding ESG into everything we do.”