Standard Charterd Bank, in cooperation with the Sumitomo Mitsoy Banking Corporation, has announced the provision of financing of $ 566. 4 million in accordance with Islamic law and supported by the Export Credit Agency, in the interest of the Saudi Electricity Company to facilitate the electrical linking project between Saudi Arabia and Egypt.
The Swedish Export Credit Agency will provide a 14-year guarantee for the finance, which is supported by Swedish Export Credit.
This significant funding complies with Islamic Sharia requirements for producing goods.
The electrical connection project is the first of its kind and is widely used to connect power networks throughout the Middle East and North Africa region.
The project will allow each of the Kingdom of Saudi Arabia and Egypt to exchange up to 3000 megawatts of electric energy.
By the time the connection project is finished in 2026, electricity will flow in several directions, passing through Tabuk in the Kingdom of Saudi Arabia to reach Medina in Egypt from the city of Badr.
As part of the five-year joint loan, the bank contributed 3 billion US dollars alongside other financial institutions, demonstrating Standard Chartard’s commitment to Saudi Arabia and Egypt and its desire to play a significant role in their economic development.
Sonl Koshal, the regional chief executive of Standard Charterd for the Africa and the Middle East, stated, “We seek to play a vital role in developing the major economies of all countries in the Middle East and Africa region, and we consider both Saudi Arabia and Egypt to be two dynamic and basic markets for us.”
The importance of cross-border electricity trade, he continued, “is growing quickly and profiting from the size savings, giving the two countries an effective, safe, safe, and free carbon emissions to electrical energy, and Standard Chartard has a place that enables him to work as much as possible and facilitated for internal and external investments from Saudi Arabia to foreign markets and vice versa.
Standard Chartered: 566.4 million dollars in finance for the project to connect Saudi Arabia and Egypt’s electricity grids
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