Trade Bank of Iraq, Standard Chartered and General Electric (GE) have closed what they claim to be the region's largest letter of credit (L/C) confirmation of its kind.

According to the banks and GE, it is an integral part of a US$600 million financing agreement to fund a power project in Iraq.

Confirmation and discounting

The financing agreement is the largest bespoke L/C confirmation and discounting transaction of its kind in the region.

The project aims to deliver more than two gigawatts of new power to Iraq, under its 'Power up Plan', which is part of the country's rebuilding and modernisation scheme.

Energy security

GE and Iraq's Ministry of Electricity had previously announced agreements worth US$1.4 billion to deliver power generation equipment and services to support Iraq's growing electricity needs.

The agreements will enhance and provide stability to the country's energy infrastructure.

GE employs more than 300 people in its operations in Iraq and is considered a key player in Baghdad's efforts to close the gap between the country's electricity supply and demand.

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