2023-10-27 07:23:41
The Arab Investment and Export Credit Guarantee Corporation (Daman) issued an insurance policy to cover an international commercial loan to Egypt worth $500 million with a 7-year credit term.
The institution, which is headquartered in Kuwait, said in a statement seen by the Arab World News Agency that Egypt succeeded in completing the two-tranche international commercial loan provided equally by Deutsche Bank and the Arab Banking Corporation, benefiting from the document issued by Daman in The sustainable financing framework provided to Egypt within the decisions of the COP27 summit, which was held in Sharm El-Sheikh in November 2022.
The statement added that this deal is the first that Egypt will benefit from in the international credit market in terms of the multilateral credit insurance mechanism with the support of “Daman,” which helped Egypt obtain favorable financing conditions at a lower cost than those available in the international bond market.
“Daman” indicated that the credit insurance policy for the mixed sovereign loan covers up to 95 percent of the principal amount and the interest associated with it.
In this context, the Foundation’s Director General, Abdullah Ahmed Al-Sabeeh, believed that the process reflects Egypt’s commitment to diversifying its external financing sources by using mixed financing solutions with strong support from “Daman” and international private insurance agencies.
On the other hand, the European Union proposed including the project to connect energy networks between Egypt and Greece on the list of so-called projects of mutual interest, a step that would help accelerate the issuance of a project license and help in financing it.
The company “Eleka”, a subsidiary of the Greek “Coblozos Group”, is developing the “Grigi Interconnector” project under the surface of the Mediterranean Sea. Bloomberg News Agency quoted a statement from Coblozos as saying that the European Union’s proposal will be sent to the European Parliament and the European Council for ratification.
The 950-kilometre-long link, with a capacity of 3 gigawatts, will transfer green energy from Egypt to Europe. The Greek company intends to establish renewable energy plants with a capacity of 5.9 gigawatts in Egypt.
It is worth noting that, last May, the company “Coblozos Group” signed a memorandum of understanding with “Infinity Power”, a joint project between “Masdar” in Abu Dhabi and “Infinity” of Egypt, to exchange expertise in order to accelerate the generation of renewable energy. Necessary to operate the joint submarine cable between Greece and Egypt.
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