NBB and Bapco Energies Announce First ESG-Linked Interest Rate Swap in Bahrain

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 His Excellency Dr. Mohammed bin Mubarak bin Daina, Minister of Oil and Environment, Special Envoy for Climate Affairs, by 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.

On this occasion, 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. NBB prides itself on its customer-centric values that support clients with creative solutions as well as strategic guidance to help drive their financial success. With ESG becoming a priority across industries, we are committed to encouraging organisations to embrace sustainability and embed ESG practices within their operations.’

Commenting on the ESG-linked interest rate swap, Group Chief Executive Officer of Bapco Energies, Mark Thomas, said: ‘Bapco Energies’ partnership with NBB on this landmark ESG-linked interest rate swap underscores our commitment to embedding ESG into everything we do. We will continue working with our partners to advance the ESG agenda in the Kingdom of Bahrain.’

NBB continues to lead on pivotal collaborations and initiatives that align with the Bank’s efforts to advance the Kingdom’s banking and finance sector.