Bank Nizwa inks financing agreement with RDAC for $90 million in sustainable financing

Business Saturday 23/December/2023 16:29 PM
By: Times News Service
Bank Nizwa inks financing agreement with RDAC for $90 million in sustainable financing

Muscat: As the pioneering provider of fully Sharia-compliant sustainable finance solutions in the Sultanate of Oman, Bank Nizwa, the leading and most trusted Islamic bank in Oman, ardently champions endeavours that align with its strategic focus on sustainable development for the advancement of the country's economy.  

In line with the same, the bank formalised a financing agreement with Renaissance Duqm Accommodation Company (RDAC), a subsidiary of leading accommodation solutions, facilities management and services solutions company, Renaissance Services, to extend $90 million in sustainability linked financing to support its projects.

The financing agreement was signed at a ceremony, by Khalid Al Barwani,DGM &Head of Wholesale Banking Group at Bank Nizwa and Raashid Ali, Chief Financial Officer, Renaissance Services, in the presence of key personnel from both organisations.

Renaissance Duqm Accommodation Company’s efforts in the Special Economic Zone at Duqm (Sezad) have culminated in the establishment of the world-class Renaissance Village Duqm, a pioneering enabler of the government's vision for Duqm as a smart city and global logistics hub driving economic diversification in the Sultanate of Oman. The integrated workforce accommodation facility provides premium living standards to workers of all segments, in full compliance with the standards of Sezad and the International Labour Organisation (ILO).

“At Bank Nizwa, sustainability is a core concept shaping our product and service offerings, in alignment with Oman’s Vision 2040,” commented Khalid Al Barwani, on the occasion. “As the leading and most trusted Islamic Bank in the country, we are keen to forge partnerships with corporates and entities that share our dedication to the adoption of green practices and eco-conscious endeavours to guarantee the socio-economic progress of the Sultanate. Our partnership with Renaissance signifies more than just a financial pledge; it marks a strategic alliance toward a sustainable future.”

He added, “Through this partnership, Bank Nizwa will be supporting the development of sustainable workforce accommodation projects undertaken by Renaissance Duqm Accommodation Company SAOC.”

Speaking on the occasion, Raashid Ali, Chief Financial Officer, Renaissance Services, said, “In line with Renaissance's commitment to sustainability and alignment with the Sultanate's Net Zero target, we are delighted to announce our partnership with Bank Nizwa for our first-ever sustainability-linked financing facility. This innovative collaboration is a testament to continuous efforts to meet sustainability benchmarks. We believe collective efforts are essential to achieving ambitious targets that benefit future generations, and our partnership aims to encourage a strategic shift towards a more sustainable future for corporates in the Sultanate.”

Under its Wholesale Banking arm, this partnership exemplifies the bank’s commitment to supporting key national projects that aid in the socio-economic development of the country, and to fostering the development of a green and circular economy.