HSBC has issued the first green trade finance facility in the Middle East and North Africa region, raising US$48 million for UAE-based Lamprell to support execution of its fabrication work on the Seagreen Offshore Wind Farm project off the coast of Scotland.
HSBC was the sole arranger for the innovative facility, which is also the first green guarantee in the MENA region.
Daniel Howlett, HSBC’s Regional Head of Commercial Banking for the Middle East, North Africa and Turkey (MENAT), 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.”
Christopher McDonald, Chief Executive Officer of Lamprell, added: "We expect renewable energy projects to comprise an increasingly large percentage of our revenue so it is important for us to have access to this type of financing, which is not only aligned to our 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.”
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.
Partners for over a decade, 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.
HSBC is a leader in sustainable finance globally, with its product range covering both wholesale and retail customers. Its MENAT network has led ground-breaking sustainable finance transactions for the region and in 2020 the bank’s sustainability credentials were underlined when it was named the leading bank in the Middle East for sustainable finance1.
Also in 2020, HSBC announced a plan to prioritise US$1 trillion in financing and investment that supports the transition to a net zero global economy, in accordance with the Paris Agreement. HSBC also stated its own aim to be net zero in its operations and supply chain by 2030.
Publicly listed on the London Stock Exchange, Lamprell is a provider of diversified engineering, construction and contracting services to the onshore and offshore renewables, oil and gas energy industries.
This will be Lamprell’s third major foray into the renewables sector, having demonstrated their budding expertise over the past two years on two separate wind farm projects.