Standard Chartered, General Electric (GE) and the Trade Bank of Iraq (TBI) have signed a US$366mn memorandum of understanding aimed at meeting the growing demand for power in Iraq.

Under the MoU, Iraq’s Ministry of Electricity will secure a US$366mn facility to support the financing of high-priority power and infrastructure contracts in the country. The transaction, which is expected to be closed by the end of 2016, is according to Standard Chartered the largest of its kind executed in Iraq.

Earlier this year, a similar financing agreement was signed between the three entities to help deliver and secure more than 700MW power to the country’s power grid, which together with the new MoU adds up to more than US$500mn worth of financing to the Iraqi government.

Standard Chartered and TBI are the primary financiers, and Bahrain’s Ahli United Bank will take a risk participation in the deal as a secondary financier, according to Faisal Al Haimus, TBI’s board chairman and acting CEO.

Commenting on the MoU, Ahmad Abu Eideh, Standard Chartered’s Middle East CEO, says:

“The Iraqi government has demonstrated strong resolve in boosting the infrastructure of the country. With the support of the government, our partners and clients, we will continue to play a key role in bringing best international practice financial solutions to our clients operating in Iraq. Our main aim is to meet the increasing banking needs of our clients who are progressively more active in Iraq, notably in the power, oil, telecoms, infrastructure sectors and large government projects.”

Standard Chartered launched its operations in Iraq in November 2013 when it opened its Iraq head office and first branch in Baghdad.