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12° Nicosia,
26 June, 2024
 

Eurobank eyes support for internet cable connecting Europe and Asia

Eurobank considers joining the project to boost connectivity across continents

Panayiotis Rougalas

Panayiotis Rougalas

Eurobank, initially hesitant about financing the East to Med Data Corridor (EMC) cable system, is now contemplating entering the second round of funding for the mega project, according to a report by Kathimerini reporter Panayiotis Rougalas.

The EMC cable system's first phase, set to begin implementation this summer, aims to connect Europe to Saudi Arabia, with the cable route spanning Singapore, Saudi Arabia, Israel, Cyprus, Greece, Italy, and France. Cypriot funds, including the National Bank of Greece (Cyprus), Alpha Bank, Piraeus Bank, and Al Jazeera Bank, are contributing to the financing of the first phase. Eurobank is reportedly in early discussions to participate in the significant syndicated loan for the project's second phase, signaling a potential strategic move. The loan agreements for the first phase are expected to be finalized by the end of April, with the four banks invited to provide approximately 60% of the required funds, totaling around 300 million euros.

The broader perspective suggests that projects like the EMC cable system are reopening the Silk Road, providing Greece and Cyprus a crucial role in facilitating connectivity between Europe and Asia. Cypriot banks, traditionally involved in projects supported by the European Investment Bank (EIB), are now venturing into syndicated loans, marking a shift towards more substantial and challenging collaborations within the banking sector. Against the backdrop of recent submarine cable sabotage incidents disrupting communication between Europe and Asia, timely investments like the EMC cable gain significance. The project involves key players such as Saudi Arabia's MENA HUB, the Greek-led company TTSA S.A., and the Public Power Corporation of Greece (PPC), with Saudi Telecom holding a major stake in the initiative.

[This article was translated from its Greek original and edited for brevity]

TAGS
Cyprus  |  Europe  |  energy  |  connectivity

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