AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
SACE will guarantee 90% of a 519 million USD export loan for work conducted by the Italian company Prysmian at the North Sea Link Project. The 2 billion EUR project involves the construction of a subsea connector between the United Kingdom and Norway.
According to the press release, the project will also benefit from interest rate stabilisation provided by SACE's sister company SIMEST. This makes it "the largest deal ever struck in this sector in Europe with coverage from an export credit agency."
After its construction, the connector will be operated by National Grid North America, a company of the National Grid Plc Group, UK’s largest electricity and gas utility company. Hence, the implementation of this project is likely to affect international trade in electricity; particularly that the provided trade finance "contributes significantly to the completion of an infrastructure project of strategic importance to the United Kingdom and Norway" (cf. press release).
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