Teams of international and regional banks are being assembled for two loan packages for private power projects in Egypt and the UAE. The two deals will be worth over $900 million in total. In both cases, the developers have set a mid-December target for financial close.

In Egypt, a venture led by InterGen of the US is in final negotiations with banks about a two-tranche financing for the 650-MW Sidi Krier power station. Commercial International Bank (Egypt - CIB) and National Bank of Egypt are expected to be picked as joint lead underwriters for a $180 million loan to be raised from Egyptian banks. It will be repaid over 12 years after the three-year drawdown period. InterGen is also negotiating with four banks about a $130 million international tranche, to be repaid over nine years after the drawdown. The banks are ABN AMRO, Banque Paribas, Societe Generale and Dresdner Kleinwort Benson. No details have been disclosed on pricing (see Egypt).

The UAE deal involves a loan of $600 million for the Taweelah A-2 power and water project, being carried out by a venture led by CMS Energy Corporation of the US (MEED 16:10:98). Lead arranger Barclays Capital is now seeking sub-underwriters for the loan, which bankers say will be for 17 years. The pre-completion pricing has been set at about 80 basis points over Libor, rising to 'the early 100s' post completion, bankers assessing the deal say.