Saudi Arabia secures funding for electricity interconnection with Egypt
Egypt just approved a plan to ration electricity, though the government said there is not a shortage of power.
Saudi Arabia announced today new funding for its electricity interconnection plan with Egypt.
The Saudi Electricity Company said it secured a 14-year facility worth $567.5 million to finance the Saudi Arabia-Egypt electricity interconnection project. The deal was signed by the British bank Standard Chartered and Japan’s Sumitomo Mitsui Banking Corporation and is guaranteed by the Swedish government’s export credit agency, the official Saudi Press Agency reported.
A facility refers to a line of credit that can be drawn upon within a set time frame. In this instance, Standard Chartered and Sumitomo Mitsui will provide the Saudi Electricity Company with the requested funds. Sweden will pay the banks the money borrowed should the Saudi firm not be able to pay.
Export credit agencies provide financing for international trade.
