IRAQ. GE, Trade Bank of Iraq (TBI) and Standard Chartered Bank (SCB) have signed a financing MoU to accelerate the development of power and infrastructure projects in the country that will help meet the growing demand for power in Iraq.
The MoU also underlines the financial partnerships formed by GE with global and local financial institutions to speed up power and infrastructure projects in the country. Earlier this year, a similar financing agreement with the three entities had facilitated the completion of the first phase of the ‘Power Up Plan’ signed by GE with the Ministry of Electricity to deliver and secure more than 700 MW of power to the country’s grid.
This highlights GE’s strong commitment to work with the government in building innovative solutions on technology and financing. The accomplishment of such financing schemes has supported more than US$500 million of facilities to the Iraqi government.
GE has the unique ability to structure financing solutions through its global network of banking partners and multiple international export credit agencies. Over the past year, by working with different Ministries in Iraq, GE has attracted more than nine major global export credit agencies to Iraq resulting in significant project investment commitment.
Aziz Koleilat, President & CEO Iraq & Levant of GE, said: “The financing MoU marks our long-term commitment to Iraq to support the government in driving power and infrastructure enhancements and in undertaking new projects that contribute to sustained economic growth. The new MoU follows the successful completion of the first phase of our Power Up Plan, which we had similarly supported with TBI and SCB, and now helps in meeting the critical power needs of Iraqi people. By bringing international and local banks to drive financing in the country, we will work to implement the key developmental priorities of the government.”
Faisal Al Haimus, Chairman of the Board & acting CEO of TBI, said: “The MoU is a strong example of our commitment to support our nation’s progress. Assuring a reliable infrastructure is central to boosting growth and adding to the welfare of our people. We will work with our partners in ensuring the financing support outlined in the MoU will contribute to the nation’s infrastructure development, especially in the power sector. Ahli United Banking Group - Kingdom of Bahrain will take a risk participation of the club deal as a secondary financier along with the primary financiers being Trade Bank of Iraq and Standard Chartered Bank making it the first club deal in Iraq’s Banking history.”
Ahmad Abu Eideh, CEO, Middle East Jordan, Egypt Iraq and Lebanon of Standard Chartered Bank, added: “For Standard Chartered, the Middle East has been part of our strategic footprint for over 90 years. This MoU is a testament to our commitment to Iraq, an increasingly important economy in the region. Standard Chartered had launched its operations in Iraq in November 2013 by opening its Iraq head office and first branch in Baghdad - to be the only international bank to have full-fledged on-the-ground wholesale banking operations in Iraq.”
He added: “The Iraqi government has demonstrated strong resolve in boosting the infrastructure of the country. The support extended by GE, TBI and the Bank in this new project financing MoU will help the nation in implementing strategic infrastructure projects. With the support of the government, our partners and clients, we will continue to play a key role in bringing best international practice financial solutions to our clients operating in Iraq. Our main aim is to meet the increasing banking needs of our clients who are progressively more active in Iraq, notably in the power, oil, telecoms, infrastructure sectors and large government projects. Thus, participating in Iraq’s growth.”