HSBC reaffirmed its status as the Middle East’s leader in Islamic project finance in 2024, arranging and delivering Shariah-compliant financing for some of the world’s most complex, capital-intensive projects.
In a landmark year for infrastructure development in the Middle East, HSBC played lead roles on seven major Shariah-compliant project finance transactions. The bank ranked at the top of the IJGlobal MENA infrastructure finance mandated lead arranger league table and reinforced its leadership in large, novel and multi-sourced transactions, particularly in the Saudi power, petrochemical and infrastructure sectors.
Among the year’s most significant deals was the $3.9 billion Islamic financing package for the Taiba-2 and Qassim-2 independent power projects (IPPs), the largest Islamic financing for a power project ever executed in Saudi Arabia. HSBC and its local affiliate, Saudi Awwal Bank (SAB), jointly acted as mandated lead arrangers, with HSBC also playing the role of hedge execution bank. The financing was backed by nine banks in total. These power plants will contribute 3.9GW of capacity to the grid and are part of the Kingdom’s strategy to achieve a 50:50 mix of renewables and efficient gas-fired power, with carbon capture built into the project scope.
Another standout transaction was HSBC’s role as sole financial adviser to Saudi Electricity Company on its $3 billion financing for participation in IPPs alongside Acwa Power and Haji Abdullah Alireza & Co. This advisory mandate further demonstrated HSBC’s strategic role in advancing major energy transition infrastructure through Shariah-compliant funding structures including istisna-ijara and murabaha tranches.
In a landmark year for infrastructure development in the Middle East, HSBC played lead roles on seven major Shariah-compliant project finance transactions
In the industrial sector, HSBC was a lead player in the $6.9 billion limited recourse debt financing for the Amiral Expansion Project, a joint venture between Saudi Aramco and Total Energies. The transaction involved a complex capital stack of export credit agency-backed tranches, a Saudi Industrial Development Fund tranche, and both conventional and Islamic facilities. HSBC Saudi Arabia was appointed coordinator, bookrunner, mandated lead arranger, offshore account bank and intercreditor agent. This was the first time a Saudi-based entity performed the intercreditor agent role on a transaction of this scale and complexity, highlighting HSBC’s local execution strength.
The bank also played a leading role in a SR640 million ($171 million) Islamic financing package for Red Sea Global’s public-private partnership project awarded to Catrion for the development and operation of central catering and laundry facilities for the Red Sea tourism project in Saudi Arabia. HSBC supported SAB as mandated lead arranger and VAT facility provider, while also serving as facilities agent, security agent and investment agent.
With its end-to-end structuring expertise, commitment to Shariah-compliant innovation and deep integration across large infrastructure mandates, HSBC continues to set the benchmark for Islamic project finance in the region. Its performance in 2024 cements its position as a capable and trusted partner for large-scale, multi-source Islamic infrastructure transactions in the Middle East.
