BEIRUT: Iraq’s government has agreed to continue supplying Lebanon’s electricity company with heavy fuel oil for another year in exchange for in-kind services, Lebanon’s caretaker prime minister said on Thursday, alleviating pressure on Lebanon’s struggling power grid.
Najib Mikati said he had made the request to Iraq’s Prime Minister Mustafa Al-Kadhimi, who agreed to extend the same terms of the agreement signed last year.
Iraq signed an agreement in July 2021 to give cash-strapped Lebanon one million tons of fuel oil to help keep the lights on, in exchange for services including health care for Iraqi citizens, as the country grapples with power cuts up to 23 hours a day during an unprecedented economic crisis.
“The Iraqi government, headed by Mr.Mustafa Al-Kadhemi, approved in a meeting today... to extend the supply of fuel to Lebanon... for a period of one year, under the same conditions as before,” Lebanese Prime Minister Najib Mikati’s office said in a statement.
For the past year, Lebanon’s power plants have depended on the deal with Iraq to produce one to two hours of electricity per day.
Residents in the poverty-stricken country largely rely on expensive private generators for power the rest of the time.
The Iraqi oil cannot be used directly by Lebanon’s power stations, so Beirut will continue to buy compatible fuel from other providers which will receive the Iraqi oil in exchange.
At the time of signing, last year’s deal was worth $300-$400 million, Raymond GHajjar, the Energy minister at the time had said.
As fuel prices shot up, the deal is now worth an estimated $570 million, Lebanon’s Energy Minister Walid Fayad told AFP last month.
An Iraqi ministerial delegation is expected to visit Beirut shortly to agree on the in-kind services that Baghdad wants in return for the fuel, Fayad said.
Iraq is a member of the Organization of the Petroleum Exporting Countries (OPEC) but suffers from its own electricity shortages.
Lebanon is battling one of the planet’s worst economic crises since the 1850s, and the state-run electricity company faces dire cash shortages.
(With AFP and Reuters)
Iraq to supply Lebanon with fuel for electricity for another year: Lebanese PM
https://arab.news/jgfrs
Iraq to supply Lebanon with fuel for electricity for another year: Lebanese PM
- Iraq has agreed to renew a one-year deal to provide Lebanon with fuel for its power plants in exchange for in-kind services, Lebanon’s Najib Mikati says
- Iraq signed an agreement in July 2021 to give cash-strapped Lebanon one million tons of fuel oil to help keep the lights on
Stc Group issues US dollar-denominated sukuk with a total value of $2bn
RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.
The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.
It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.
The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy.
This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.
This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position.
It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.
