Bank Nizwa Signs Sustainability-Linked Financing Agreement with MSA Green for Mangrove Plantation

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In a monumental step towards advancing environmental stewardship and driving economic growth, Bank Nizwa, the leading and most trusted Islamic bank in the Sultanate of Oman, has forged a strategic partnership with MSA Green Projects LLC (MSA Green), extending sustainability-linked financing to support its ambitious mangrove plantation endeavour in collaboration with Oman Environment Authority. The initiative underscores Bank Nizwa's dedication to leading sustainable development and advancing environmental objectives through coastal protection and carbon sequestration, while also supporting the empowerment of the local community through ecotourism initiatives. This agreement was formalised during the Oman Sustainability Week, an event of national significance dedicated to pioneering sustainability initiatives. The agreement signed on behalf of the bank by Mr. Azzan bin Abdul Amir Al Saleh, Assistant General Manager SME Banking at Bank Nizwa, and Mr. Manbhupinder Singh Atwal, CEO of MSA Green.

Bank Nizwa has demonstrated its firm support for the project by approving a substantial working capital. This crucial financial assistance ensures not only the smooth operation and execution of the project but also its long-term success, empowering MSA Green to effectively carry out its mandate of planting 100 million mangrove trees across 20,000 hectares of land in Shanna, Al-Najdah, Film and Dharf-Hitam, over the next 27 years.  

Commenting on the agreement, Mr. Azzan Al Saleh, stated, “The Islamic finance sector serves as a cornerstone in expediting the Sultanate’s green transition. Bank Nizwa, a prominent contributor to the nation's sustainability initiatives, assumes a leadership role by empowering organisations that resonate with its ethos and are steadfast in their pursuit of promoting sustainable ventures. Therefore, our collaboration with MSA Green in their decarbonisation endeavour stands as a testament to our dedication to propelling the journey towards a low-carbon economy."

Speaking on the occasion, Mr. Manbhupinder Singh Atwal from MSA Green said, “It is with great pride we have undertaken this ambitious initiative, an endeavour that underscores our dedication to environmental stewardship. Collaborating with Bank Nizwa, an esteemed institution renowned for its leadership in sustainable efforts, bolsters our determination to enact meaningful change for our environment. Together, we are committed to forging a path towards a sustainable future for generations to come.”

From an economic standpoint, the project will generate income through the sale of carbon credits, leveraging the project's environmental benefits to offset carbon emissions and meet sustainability goals. Additionally, the project will stimulate growth in the fisheries sector by creating opportunities for local fishermen. This dual approach not only diversifies revenue streams but also fosters economic resilience and sustainability in the regions.

On the environmental front, the extensive planting of mangroves along coastal areas, especially in storm-prone regions, serves as a crucial strategy to reduce erosion and safeguard biodiversity. Moreover, mangroves, renowned for their ability to store carbon, play a pivotal role in blue carbon ecosystems. Studies affirms that one hectare of mangroves can sequester five times more carbon than an equivalent area of forest, highlighting their significant contribution to climate change mitigation.

Through such impactful, large-scale initiatives, Bank Nizwa remains resolute in its pledge to drive sustainability and will continue to explore innovative ways to support environmentally responsible projects.

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