Dubai: HSBC has structured and financed a $558 million (Dh2.049b) working capital package for the contractors who successfully tendered for the civil works and construction contract for Package D of Stage Two of Etihad Rail.
An unincorporated joint venture between China Railway Construction Corporation (CRCC) and the UAE’s National Projects and Construction (NPC) company was awarded the contract by Etihad Rail in December 2019. With the working capital facilities now in place, construction on the railway line has begun.
Etihad Rail Package D involves the construction of a 145-kilometre railway line connecting 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.
“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,” Dr. Ali Obaid Al Dhaheri, Ambassador of the United Arab Emirates to the People’s Republic of China.
HSBC won a competitive pitch to provide the CRCC-NPC joint venture with a comprehensive $558 million package of guarantees, trade, supply chain and receivables, finance cash management, and foreign exchange solutions to enable them to successfully complete the railway.
“HSBC is incredibly proud to once again be involved in one of the UAE’s transformative infrastructure projects. HSBC’s heritage as a bank founded in Asia 155 years ago, combined with its origins in the Middle East dating back to 1889, make it a powerful partner to connect two of the world’s most exciting economies,” said Abdulfattah Sharaf, Chief Executive Officer UAE and Head of International, HSBC Bank Middle East Limited