Bahrain’s Al-Dur Power & Water Company has closed a $1.3bn refinancing that replaces its original financing, secured in 2009.

The refinancing facilities include $450m of conventional facilities and $850m of Islamic facilities. They extend up to 14 years and were provided by a syndicate of 20 banks including local, regional and international lenders.

Banks participating in the transaction include the local Ahli United Bank, Arab Banking Corporation and Gulf International Bank, Saudi Arabia's Al-Rajhi, Riyad Bank, National Commercial Bank, Banque Saudi Fransi and Arab National Bank, Saudi-based Apicorp, Jordan-based Arab Bank, Kuwait Finance House, National Bank of Kuwait, Japan's Mitsubishi UFJ Financial Group, Export Development Canada, Germany's KfW IPEX, the UAE's Mashreq, France's Societe Generale, BNP Paribas and Credit Agricole-CIB, and the UK's Standard Chartered.

Al-Dur Power & Water Company is Bahrain’s largest power generation and water desalination company. It accounts for one-third of the country's power and water production, with a combined capacity of 1,243 GW of power and 48 million imperial gallons a day of water. The right to develop, finance and operate the project was awarded in 2008 by the Electricity & Water Authority (EWA) to a consortium of France’s Engie and Kuwait-based Gulf Investment Corporation.

Commercial operations started in early 2012. The company has a 25-year power and water purchase agreement entered into in 2009 with the EWA.