Bahrain’s Bapco Energies has offered a minority possession stake within the Saudi Bahrain Pipeline Firm (SBPC) to a fund managed by BlackRock’s Diversified Infrastructure staff.
Bapco Energies mentioned in a information launch that the transaction represents its first asset monetization and displays BlackRock’s dedication to investing in Bahrain.
SBPC owns a portion of the 69.6-mile (112-kilometer) pipeline supplying crude oil from Saudi Aramco to Bapco Refining, the nationwide refinery of Bahrain and a subsidiary of Bapco Energies.
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Beneath the phrases of the transaction, the BlackRock infrastructure fund takes a minority stake in SBPC, whereas Bapco Energies retains majority possession and governance over the corporate. The proceeds from this transaction might be used for Bapco Energies’ capital, in keeping with the discharge. The monetary particulars weren’t disclosed.
Bapco Energies mentioned it’s supporting Bahrain in attaining net-zero carbon emissions by 2060, with a dedication to investing in decarbonization initiatives throughout government-owned power and utility companies.
Bapco Energies and BlackRock’s Diversified Infrastructure enterprise have signed a memorandum of understanding (MoU) to discover collaboration on future Bahraini infrastructure and decarbonization initiatives. The (MoU) outlines alternatives to supply technical experience, monetary assist, and strategic steering for renewable power initiatives, electrical automobile charging, carbon seize and sequestration, direct air seize, power effectivity, waste-to-energy, and biofuel operations, all geared toward lowering the carbon footprint of Bahraini infrastructure, in keeping with the discharge.
Bapco Energies Chairman Shaikh Nasser bin Hamad Al Khalifa mentioned, “The funding and strategic partnership with BlackRock marks a big milestone for Bapco Energies and the Kingdom of Bahrain, because it aligns with the imaginative and prescient of His Majesty King Hamad bin Isa Al Khalifa, King of the Kingdom of Bahrain and the aspirations of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister. It highlights the enchantment of the Kingdom of Bahrain’s modern strategy to draw overseas direct investments”.
Mark Thomas, Bapco Energies Group CEO, mentioned, “As we attempt in Bapco Energies to maximise worth throughout our funding portfolio, we’re implementing a spread of initiatives and initiatives that assist complete nationwide improvement and capitalizing on our asset and operations administration. These efforts are designed to not solely improve our financial resilience but additionally to foster innovation and sustainability inside the power sector. By doing so, we’re contributing considerably to the nationwide economic system”.
Edward Winter, Managing Director and Head of EMEA for Diversified Infrastructure, BlackRock, mentioned, “We’re thrilled to companion with Bapco Energies. This funding in Saudi Bahrain Pipeline Firm not solely provides our traders publicity to a important, contracted infrastructure asset, it additionally helps the modernization of a strategic asset for Bahrain because it seeks to realize its decarbonization objectives. It’s also a testomony to our place as a number one infrastructure investor within the Center East, with the potential to supply distinctive alternatives for our purchasers”.
Yazeed Almubarak, Managing Director for BlackRock Center East, mentioned, “At BlackRock, we’re targeted on figuring out and investing in infrastructure property that supply engaging risk-adjusted returns throughout the Center East area. This funding in Saudi Bahrain Pipeline Firm and the potential for future collaboration with Bapco Energies, displays our dedication to working with key companions within the area to carry our infrastructure funding experience to fulfill financial improvement and diversification objectives”.
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