Standard Chartered boosts Iraq's power with $95 million loan

Deal News | Feb 10, 2025 | Zawya

Standard Chartered boosts Iraq's power with $95 million loan

Standard Chartered has successfully arranged a $95 million term loan, aimed at enhancing Iraq's power infrastructure. The loan is supported by a full guarantee from UK Export Finance, ensuring coverage against both political and commercial risks. This financial backing will facilitate the construction of five electrical substations in Iraq's north and south, vital for addressing the country's ongoing power shortages exacerbated by increased domestic demand. Additionally, Iraq plans to purchase electricity from neighboring nations to help alleviate its energy deficit. This effort follows Standard Chartered's previous role in securing a $298 million UKEF-backed project for stormwater and wastewater improvements in Hilla City.

Sectors

  • Finance
  • Energy and Power Infrastructure
  • Export Finance

Geography

  • Iraq – The target location for the power infrastructure project and the beneficiary of the financing.
  • United Kingdom – UK Export Finance is providing the financial backing for the loan arranged by Standard Chartered.

Industry

  • Finance – The article discusses financial activity involving the arrangement of a loan by Standard Chartered.
  • Energy and Power Infrastructure – The financing is specifically aimed at enhancing power infrastructure in Iraq.
  • Export Finance – UK Export Finance is providing a 100% guarantee for the loan, mitigating risk.

Financials

  • $95 million – The total amount of the loan arranged by Standard Chartered to enhance Iraq's power infrastructure.
  • $298 million – The amount facilitated by Standard Chartered in a previous UKEF-backed project for infrastructure improvements in Hilla City, Iraq.

Participants

NameRoleTypeDescription
Standard CharteredLead Arranger and BookrunnerCompanyA multinational bank that has arranged the $95 million loan for Iraq's power infrastructure.
UK Export Finance (UKEF)GuarantorGovernmentA United Kingdom government agency backing the loan with a 100% guarantee.
Iraq's Ministry of ElectricityBuyerGovernmentThe governmental body in Iraq responsible for improving the country’s power infrastructure using the arranged financing.