Abu Dhabi Water & Electricity Authority (Adwea) is expected to close the refinancing of its $3.2bn Shuweihat 2 power and water project by the end of September, according to bankers working on the deal.

About 12 banks have already committed to funding the $1.1bn commercial bank tranche for the project and one banker says the financing should complete “imminently”.

The 12 banks have agreed to lend to the project over 20 years with margins starting at 260 basis points above the London interbank offered rate (Libor).

Several banks had expressed concerns that Adwea was not offering them enough money and they attempted to force Adwea to pay more for the loan (MEED 31:7:09).

Although there are still concerns over the pricing of the deal, the banks have now agreed to the terms. “Pricing is still a bit low, but the deal should get done by the end of the September,” says the banker.