Feb 20, 2018
Millions of homes and businesses across Iraq will benefit from an improved power supply after J.P. Morgan’s Export Finance team led the financing work with General Electric and the U.K. government to support much-needed repairs to the nation’s struggling power grid.
Decades of conflict and occupation by ISIS have hindered efforts to rebuild the Iraqi economy and the country's ailing infrastructure. Under the contracts valued at $220 million, General Electric Global Services UK will provide new technology solutions that will improve gas turbine performance and enable power plants to operate more dynamically in cities including Baghdad, Basra and Karbala.
Ahmed Saeed, managing director, Public Sector EMEA, explained, “This transaction represents another milestone in our relationship with Iraq, which began shortly after the country's liberation in 2003 and includes close collaboration on the establishment of Iraq's largest financial institution (Trade Bank of Iraq) and its debut sovereign bond last year."
Under the terms of the deal, J.P. Morgan is providing $105.4m of financing guaranteed by UK Export Finance (UKEF), the U.K.'s export credit agency, reinsured by Swiss export credit agency (SERV); UKEF is also directly funding a parallel portion of $105.4m.