Thousands of people living in isolated rural areas of Timor-Leste will be able to access electricity for the first-time when a new power plant is built with our support.
We have recently provided a USD170 million letter of credit facility to the Timor-Leste Government which will be used to support the construction of a much needed dual-fired (liquefied natural gas and heavy oil) power plant. This investment is part of the Government’s broader five-year nation building plan, to spend around USD2.6 billion on public infrastructure.
Providing an accessible and reliable power supply to the people of Timor-Leste is a key priority for the Government towards improving living conditions and encouraging local and foreign investment in the country.
In establishing the letter of credit facility there were a number of issues which arose, including Timor-Leste’s ‘new country’ risk profile, which makes it difficult for the Government to access financing at competitive rates.
Our Pacific CEO, Michael Rowland said, “It was a challenging deal to execute because the Government of Timor-Leste has never entered into a complex financial transaction before. Our super-regional capabilities played an important role, with our strong local relationships and access to regional specialist expertise helping us to address issues which arose, quickly and satisfactorily for both parties.”
We have been operating in Timor Leste for many years and were one of the first banks to establish operations in the country after independence. Today, we have a branch in Dili and ATM’s located at several locations across the country, providing access to essential banking services.
We are also providing funding and non-lending support to two local micro finance institutions (MFI’s), Moris Rasik and Tuba Rae Metin.
Both deliver micro-savings and group loans to over 19,000 people living in poverty - mainly women, in rural areas. The extension of credit through making small loans, usually USD200 or less, has proven to be effective in helping people to establish or expand a small, self sustaining business. Our support will help both MFI’s build capacity and remain sustainable.