Cairo – Mubasher: Standard Chartered Bank with Sumitomo Mitsui Banking Corporation announces providing a $566.40 million Export Credit Agency-supported Islamic financing facility for Saudi Electricity Company to facilitate a Saudi-Egypt electricity interconnection project.
The 14-year financing will be guaranteed by the Swedish Export Credit Agency (EKN) and funded by the Swedish Export Credit Corporation (SEK), according to a press release on Tuesday.
The electricity interconnection project is MENA's first large-scale, high-voltage direct current (HVDC) interconnection to link electricity grids.
The project will allow Saudi Arabia and Egypt to exchange up to 3,000 MW of power. The connection is projected to be in place by 2026 and will support the flow of power in multiple directions, between Egypt’s Badr to Al Madinah Al Munawara via Tabuk in Saudi Arabia.
The bank was also among other financial institutions to provide $3 billion as part of the five-year syndicated loan.
Regional CEO, Africa and Middle East, Standard Chartered, Sunil Kaushal, said: “We are driven to play a vital role in the development of key economies across AME, with both Saudi Arabia and Egypt being dynamic and pivotal markets for us.”
Kaushal added: “Cross-border electricity trade is rapidly growing in importance, and takes advantage of economies of scale, giving countries efficient, flexible, secure and decarbonised access to power.”
