HSBC won a pitch to provide the CRCC-NPC joint venture with the $558m package of solutions to complete the railway. Etihad Rail will cover more than 1,200km taking people from the Northern Emirates in the UAE to Saudi Arabia.
ABU DHABI: Banking giant HSBC has structured and financed a $558m (AED2.04bn) working capital package for the civil works and construction contract for Package D of stage two of Etihad Rail’s national railway.
With the working capital facilities now in place, construction on the railway line has begun. 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.
Etihad Rail Package D covers the construction of a 145km railway line connecting the ports of the emirates 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.
Speaking about HSBC’s role in the agreement, chief executive officer UAE and head of international at HSBC Bank Middle East, Abdulfattah Sharaf, said: “HSBC is proud to once again be involved in one of the UAE’s transformative infrastructure projects.”
HSBC won a competitive pitch to provide the CRCC-NPC joint venture with the $558m package of guarantees, trade, supply chain and receivables, finance cash management, and foreign exchange solutions to enable them to successfully complete the railway.