As part of its efforts to enhance sustainable financing and empower entrepreneurship in key sectors within the Kingdom, while supporting projects that create added value for society and the national economy in the environmental sector, alinma Bank has signed a Financing Guarantee Program agreement with the Environment Fund to provide financing guarantees for SME and large enterprise customers investing in the environmental sector or improving environmental compliance.
The agreement was signed under the patronage of His Excellency the Minister of Environment, Water and Agriculture, Eng. Abdulrahman bin Abdulmohsen AlFadhly, and in the presence of H.E. the Managing Director & CEO of alinma Bank, Mr. Abdullah AlKhalifa, and H.E. the Acting CEO of the Environment Fund, Mr. Munir Al-Sahli.
The agreement enables beneficiaries of the Environment Fund’s incentives and grants program to access Sharia-compliant financing solutions, with guarantees provided by the Fund after assessing their activities and ensuring alignment with environmental protection priorities and the Kingdom’s sustainability efforts. This reflects alinma’s commitment to its leading role in providing innovative and sustainable financing solutions.
The agreement aims to create sustainable impact by generating new jobs in the environmental sector, enabling customers to access sustainable financing, and contributing to environmental protection. It also provides an effective risk mitigation mechanism, where the Fund guarantees a defined percentage of financing, encouraging the Bank to offer more flexible and efficient financing solutions.