Ashurst advises Standard Chartered Bank and UK Export Finance on £226m clean water project in Iraq
04 December 2023
04 December 2023
Global law firm Ashurst has advised Standard Chartered Bank and UK Export Finance on a £226 million financing for the development of a 350km drainage network to improve clean water supply to the Al-Hillah district in Iraq, south of Baghdad.
The project will be transformational for a district currently unable to treat wastewater. Upon completion, the network is expected to process up to 20 million cubic metres of water each year, bringing clean water to over 25,000 households and improved sanitation to hundreds of thousands.
The transaction is supported by UK Export Finance and comprises a guarantee for £113 million in financing arranged by Standard Chartered Bank and a £113 million direct loan from HM Treasury. Standard Chartered Bank acted as sole structuring bank, mandated lead arranger and agent. The facility will allow the Governorate of Babil to contract GCITJ Babel Limited, a UK joint venture, to deliver the works.
Partner Tom Longmuir said, “We are delighted for our clients Standard Chartered and UK Export Finance on successfully completing this important development financing for Iraq. The transaction plays to Ashurst’s strengths in impact financing in emerging and frontier markets. This vital clean water project will unlock significant social benefits for the country.”
The Ashurst Projects & Energy Transition team was led by partner Tom Longmuir together with associates Rohan Last and Samia Khennous, supported by senior associates Cedric Gamambaye Dionmou and Joe Newton, associate Santina Aboue and trainee lawyer Laïla Draz. The leading Iraqi legal advisers Confluent Law Group acted alongside Ashurst.