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HSBC to fund $558 mn for UAE’s Etihad Railway project

The funds will go to the UAE’s National Projects and Construction (NPC) and China Railway Construction Corporation (CRCC)

HSBC has announced that it will finance a $558 million working capital package for the development of the 145 kilometre long UAE’s Etihad Railway project, the media reported.

The funds will go UAE’s National Projects and Construction (NPC) and China Railway Construction Corporation (CRCC), who have won the contract to develop the stage two of the project.

In a statement, HSBC said that it has won a competitive pitch to provide the CRCC-NPC joint venture with a $558 million funding package of “guarantees, trade, supply chain and receivables finance cash management and foreign exchange solutions” for the completion of the railway.

Dr. Ali Obaid Al Dhaheri, Ambassador of the United Arab Emirates to the People’s Republic of China told the media, “With the UAE and China both devoted to infrastructural development as a central pillar of our bilateral cooperation, it is positive to see China Railway Construction Corporation’s engagement with Etihad Rail. The strong bilateral relationship between the UAE and China has led to the activation of a number of joint agreements across infrastructure, railways, energy, and sustainability sectors; part of the comprehensive strategic partnership between our nations.”

The HSBC funded Etihad Railway project will connect the ports of Fujairah and Khorfakkan to the pan-Emirates network at the Dubai border with Sharjah, opening up connections to Dubai, Abu Dhabi, and the UAE border with Saudi Arabia.

The whole project involves the construction of a 1,200-kilometre railway line that will connect the UAE’s seven emirates and provide an efficient alternative to transport freight and passengers.

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