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Standard Chartered has arranged a term loan of $95 million for Iraq to boost its power infrastructure.
The bank acted as lead arranger and bookrunner for the facility which is backed by a 100% guarantee from UK Export Finance (UKEF), covering both political and commercial risks. Proceeds from this facility will be used to finance the supply of five electrical substations across northern and southern Iraq.
Iraq’s Ministry of Electricity, acting as the buyer, will leverage this financing to procure equipment from the UK.
Iraq, which endures energy shortages due to a surge in domestic demand during the hot season, is also planning to buy 3,250 megawatts (MW) of electricity from neighbouring countries, including Iran.
Last year, the bank facilitated another UKEF project worth approximately $298 million, to improve and upgrade stormwater and wastewater management infrastructure and capacity in Hilla City, Iraq.
(Writing by Brinda Darasha; editing by Daniel Luiz)
