Abu Dhabi's Al-Shuweihat $1.285 billion loan received the region’s best power project finance award for the year 2001 by Power Finance & Risk magazine. The Middle East and North Africa power project finance market saw eight non-recourse loans close in 2001. The winning deal is the largest power loan in the sector to date.
The syndicated loan agreement was fully underwritten by a consortium 25 international and regional financial institutions, in December 2001. The loan will finance Abu Dhabi Water and Electricity Authority’s (ADWEA) third independent water and power project, a gas-fueled 1,500-megawatt power plant and a water desalination facility with a capacity of 100 million imperial gallons per day at Shuweihat, in the Emirate of Abu Dhabi.
Barclays Capital and Citibank lead arranged the conventional loan, together with the Arab Banking Corp, ANZ Investment Bank, Bank of Tokyo-Mitsubishi, BNP Paribas, Gulf International Bank, HSBC, International Bank of Japan, Qatar National Bank and Societe Generale. An additional $350 million equity bridge loan, an innovative facility to finance the project, will be brought in by the developers once the project is completed, reported AFP.
The magazine noted the decision to include a $250 million Islamic tranche put together by Abu Dhabi Islamic Bank, Dubai Islamic Bank and Kuwait Finance House, could become a common feature in future Middle Eastern power deals. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
