MCB Signs USD 400m Sustainability-Linked Syndicated Loan Facility

MCB has successfully signed a USD 400 million Sustainability Linked Syndicated term Loan (“SLSL”), highlighting its commitment to its ESG (environmental, social and governance) responsibility encompassing MCB Group’s Success Beyond Numbers philosophy.

This facility marks MCB’s inaugural sustainability-linked loan. The sustainability KPIs (key performance indicators) align with the Group’s ESG strategy and focus on Sustainable Financing and Gender Diversity. The facility is structured as a two-year loan and will be used for general corporate purposes.  

Launched at USD 400 million, the deal was very well received in the syndicated loan market, with USD 849 million of commitments received, representing an oversubscription of 1.12 times with all investors being scaled-back on their initial commitments. The facility attracted 24 banks and investors in Europe, Middle East, and Asia, reflecting the international loan market continued support for MCB while consolidating its appeal to investors. The strong demand for MCB’s paper is a testament to MCB’s valued investor relationship, credit strength and high regard for MCB’s sustainable strategy.

Abu Dhabi Commercial Bank PJSC, Citi, First Abu Dhabi Bank, Intesa Sanpaolo, Mizuho Bank, Standard Chartered Bank, SMBC Bank International, and Société Générale acted as Coordinators and Bookrunners. Standard Chartered Bank and Société Générale also acted as the Sustainability Coordinators. 

Alain Law Min, CEO, MCB Ltd, stated: "We are proud of the overwhelming support that we have received for this inaugural Sustainability-Linked Syndicated Loan. As we continue to diversify our funding sources, incorporating sustainability in our funding initiatives has become essential. This transaction underlines our strong commitment to sustainability whilst allowing us to continue to support Africa’s growth story and creating a positive impact."

Thierry Hebraud, CEO Designate, MCB Ltd, outlined: "The oversubscription on this transaction reflects the understanding and strong support of our investors to our African strategy and our growth trajectory while recognizing the Bank’s efforts in driving our responsible and sustainable agenda."

 Vanessa Doger de Spéville, Head of Sustainability, Reputation & Engagement, MCB Ltd, commented: "This facility is a significant step forward in proving that business imperatives and environmental and social well-being are not contradictory. It also demonstrates to the community our willingness to co-create ESG-linked products in collaboration with stakeholders in order to drive positive impact."

MCB's successful closing of this SLSL underscores its commitment to fostering sustainability, addressing climate change, and promoting gender equality. The Bank looks forward to making a significant impact through its financing operations in Mauritius and beyond.

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