Abu Dhabi targets end September for sewerage financing

06 September 2009

Financing for $500m sewerage project to be finalised by end of September

Abu Dhabi Sewerage Services Company (ADSSC) is aiming to complete a $500m long term financing for a sewage project in the emirate by the end of September, according to bankers close to the deal.

The completion of long term funding follows the extension of an $85m bridge loan by two months until the end of September. The bridge loan had to be extended from July after ADSSC failed to get longer term financing in place by the time it matured.

Three banks provided the bridge loan, France’s Calyon and Natixis and National Bank of Abu Dhabi. They are all expected to be involved in the longer term financing, and several other banks have also been approached.

The bridge loan has enabled 70 per cent of the design work, and 10 per cent of the construction on the project, known as the second Independent Sewage Treatment Plant (ISTP2), to be completed.

The project involves the construction of treatment plants in Al Ain and Abu Dhabi by a consortium of France’s Veolia and Belgium’s Besix, and is sponsored by ADSSC.

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