Hyundai Engineering & Construction Co.Ltd (HECC) and Arab Bank plc today (Tuesday, 13 September, 2005) signed a USD$325 million-equivalent multi-tranche facility to finance a Power Station EPC contract for the Jebel Ali Power and Desalination Station. The project is owned by the Dubai Electricity & Water Authority (DEWA). The signing ceremony was attended by Mr. Sun Kyu Kim, CFO & Executive Vice President of Hyundai Engineering & Construction Co., Ltd. and Mr. Eun Young Kim, Asia-Pacific Area Executive of Arab Bank plc.
The Consortium of Hyundai Engineering & Construction Co., Ltd., the largest construction company in Korea, and Fisia Italimpianti, which is part of the Italian construction group, Impregilo, has been contracted to build the 1,200MW Power Station and 80 Million G/D Desalination Facilities for Dubai Electricity and Water Authorityâ€™s Jebel Ali Power and Desalination Station â€œLâ€ Phase 2 Project. The Project is expected to be completed in 2008.
Arab Bank plc is the sole Mandated Arranger for USD$175 million-equivalent Performance & Advance Payment Guarantee Facilities and USD$150 million Import L/C & Refinancing Facilities to support Hyundai Engineering & Construction Co., Ltd.â€™s performance obligation and procurement under USD$696 million Power Station EPC contract with the Dubai Electricity and Water Authority.
Participating Banks from around the Asia, the Middle East and Europe included; Mashreqbank psc, Abu Dhabi Commercial Bank and Korea Exchange Bank, Bahrain Branch as Arrangers, Raiffeisen Zentralbank Ã–sterreich AG, Singapore Branch as Co-Arranger, Emirates Bank International PJSC and China Construction Bank, Seoul Branch as Lead Managers and Bank of China Limited, Seoul Branch and Union de Banques Arabes et Francaises, Singapore Branch as Managers.
The Facilities will pay 40bp for Performance Guarantee, 35bp for Advance Payment Guarantee, 60bp for Import L/C and 90bp for Refinancing Facilities for the Arranger title. Both Performance and Advance Payment Guarantee Facilities are irrevocably and unconditionally guaranteed by Korea Export Insurance Corporation, the Korean ECA
â€œWe have an over-subscription in the syndication of the Facility which is a testimony of the confidence of the banking community in HECCâ€™s undertakings in this large power plant project in UAEâ€, according to HECCâ€™s CFO S.K. Kim. "HECC has undertaken many engineering projects in the Middle East and is expected to complete the project by May 2008â€, added Mr. Sung Real Kim, Senior Vice President of HECC.
"Arab Bank is proud to be the Lead Arranger of this facility to support this very important project by the Hyundai Group in Dubai. Our 75 year history and track record demonstrates our commitment and support to the region's economic growth and development. Arab Bank will continue in its mission to provide our institutional and corporate clients with the financing requirements for large scale infrastructure projects which we believe are essential for sustained economic development", said Eun Young Kim, Asia Pacific Area Executive for Arab Bank plc.
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About Hyundai Engineering & Construction Co. Ltd:
Since its beginning in 1947, Hyundai Engineering & Construction Co. Ltd. (HECC) has been the foremost leader in the Korean construction industry. The Company, head quartered in Seoul, Korea, has acted as a locomotive helping to drive Koreaâ€™s remarkable economic development and has emerged one of the leading construction companies in the world by proceeding with important construction projects. Leveraging its overseas networks including 6 offices in Middle East and North Africa Area, HECC on the back of its cutting-edge technology and renowned repution has completed and engaged in many distinguished projects. HECCâ€™s major projects in Middle Ease and North Africa includes Jebel Ali â€œDâ€™ Power & Desalination Station Phase II in U.A.E., Al-Khobar Power & Desalination Plant Phase II in Saudi Arabia, Power & Desalination Plant of the Misurata Steel Complex in Libya, Al-Mussaib Thermal Power Plant in Iraq and South Pars Projects in Iran.
About Arab Bank:
Arab Bank is Headquarted in Amman, Jordan, with 7300 employees operating in 30 countries around the world. The Bank has consolidated assets of about US$32 billion and total shareholders equity of about US$3.5 billion. Established seventy-five years ago, Arab Bank has grown to become one of the largest financial institutions in the region, and is the bank of choice for many leading global companies that do business in the Middle East and North Africa. A strong supporter of the Middle East Peace Process, Arab Bank has played an integral role in the development of the MENA economies in the areas of corporate and trade finance and infrastructure development. Arab Bank is consistently receiving strong ratings from banking regulators worldwide, it was recently named by Euromoney and the Banker Magazine as the 2005 Bank of the Year for Jordan.
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