Muscat – National Energy Services Reunited Corp (NESR), an international, industry-leading provider of integrated energy services in the Middle East and North Africa (MENA) region, has announced that it has secured a sustainability-linked loan (SLL) with HSBC Bank Middle East – the first SLL of its kind within the MENA oilfield services sector.

The SLL includes a tranche in Oman that is a first-of-its-kind in the sultanate and supports NESR’s growth aspirations through their subsidiary Gulf Energy.

“At HSBC Oman we are committed to supporting our clients on their transition journeys with sustainable financing and investment to help their businesses develop sustainably,” said Ian Johnson, Head of International Subsidiary Banking at HSBC Oman.

The loan terms are linked to three key performance indicators (KPIs) that are tied to the environmental, social and governance (ESG) indicators, and will be tracked within the agreement span.

In addition to the quantitative KPIs, NESR has also pledged to establish a formal company carbon reduction strategy. As part of its inaugural ESG report and broader decarbonisation strategy, NESR is currently evaluating a Science-Based Target initiative (SBTi) and expects to finalise targets in the coming year.

“As the national champion of MENA, we are proud to be the first of our MENA-centric oilfield services peers to enter into an ambitious, sustainability-linked loan of this type with our valued partner lenders,” said Sherif Foda, chairman and chief executive officer of NESR.

Dan Howlett, regional head of commercial banking at HSBC Middle East, North Africa and Turkey, said, “HSBC is delighted to work with NESR on this sustainability linked loan, the first-of-its-kind in MENA. HSBC is prioritising financing and investment that supports the transition to a net zero global economy, and NESR’s ESG ambitions – as this transaction shows – dovetail with our financing commitments and expertise.”

HSBC globally has committed to align its financed emissions – the carbon emissions of its portfolio of customers – to the Paris Agreement goal to achieve net zero by 2050 or sooner.