UAE - Standard Chartered Bank announces the completion of ‘the region’s first' receivables financing facility for Siemens in the UAE, a technology company focused on the digital transformation of industry and infrastructure.
The innovative solution is developed for Siemens to support its multiple long-term contracts with a UAE-based company to provide energy-efficiency solutions targeting a reduction in electricity consumption by 10-25 per cent, said a statement.
Siemens is able to monetise its receivables from these contracts using Standard Chartered’s facility, which relies on future energy-savings generated from Siemens’ supplied solution.
As part of this strategic partnership, the facility has an added credit protection, provided by Etihad Credit Insurance (ECI), UAE’s federal Export Credit Agency and Credit Insurer.
ECI has touted this transaction to be using the first-of-its-kind ESG-linked insurance policy.
Rola Abu Manneh, Chief Executive Officer, Standard Chartered UAE, said: “We are pleased to offer this innovative receivables financing programme which helps our clients maintain healthy liquidity and cash flow levels that support them in achieving their sustainability objectives.”
Helmut von Struve, Chief Executive Officer of Siemens in the UAE and the Middle East, said: “All of Siemens’ production facilities and buildings worldwide will achieve a net zero carbon footprint by 2030, and we are committed to contributing to the efforts of our customers across the Middle East to meet their emissions targets as well. Innovative financing like this will help accelerate these initiatives.”
Massimo Falcioni, Chief Executive Officer, Etihad Credit Insurance, said: “This facility will benefit Siemens to support their multiple long-term contracts with a large UAE-based company, which has the ambition to become one of the leading sustainable and efficient energy-efficiency service providers in the wider MENA region. ECI has always been keen on finding innovative solution to continuously evolve and adapt to the ever-changing requirements of our clients.”
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