GE, Trade Bank of Iraq (TBI) and Standard Chartered Bank (SCB) have signed a financing memorandum of understanding (MoU) to accelerate the development of power and infrastructure projects in Iraq.

The agreement also underlines the financial partnerships formed by GE with global and local financial institutions to speed up power and infrastructure projects in the country, said a statement from the organisation.

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, it said.

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 $500 million of facilities to the Iraqi government, it added.  

Standard Chartered had led the financing for the first phase of the ‘Power Up Plan’ and the solution demonstrates its structuring and distribution abilities and reflects the depth of relationship that the bank has with GE, TBI as well as investors, including regional partner banks, who participated in this deal. The deal also reaffirms the bank’s commitment to the Africa Middle East region and to Iraq, said a statement.

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 and CEO – Iraq and Levant of GE, said: “The agreement 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 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,” he said.

“By bringing international and local banks to drive financing in the country, we will work to implement the key developmental priorities of the government,” he added.

Faisal Al Haimus, chairman of the board and acting CEO of TBI, said: “The deal 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 agreement will contribute to the nation’s infrastructure development, especially in the power sector,” he said.

“Ahli United Banking Group - Bahrain will take a risk participation of the club deal as a secondary financier along with the primary financiers being us and Standard Chartered Bank making it the first club deal in Iraq’s banking history,” he added.

Ahmad Abu Eideh, CEO, Middle East Jordan, Egypt Iraq and Lebanon of Standard Chartered Bank, added: “For our institution, the Middle East has been part of our strategic footprint for over 90 years, and this deal is a testament to our commitment to Iraq, an increasingly important economy in the region.”

“We had launched its operations in Iraq in November 2013 by opening its 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 stated.

“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,” said Eideh.

“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 the country, notably in the power, oil, telecoms, infrastructure sectors and large government projects. Thus, participating in Iraq’s growth,” he concluded. – TradeArabia News Service