Banks responded in early December to the invitation to join the $947 million commercial debt package and the $400 million export credits tranche, covered by Germany's Hermes, on the Shuaibah independent water and power project (IWPP). About 17 banks have joined the deal, with final discussions under way with a number of local banks which may also participate.
Banks were asked to provide sub-underwriting commitments of $110 million with take-and-hold targets of $75 million. The core mandated lead arrangers (MLAs) and underwriters are ABN Amro, Arab Bank, Riyad Bank, Saudi Hollandi Bankand Export-Import Bank of Korea, which is also providing a $402 million direct loan. Al-Rajhi Banking & Investment Corporation is underwriting a $225 million Islamic facility aimed solely at local banks. The commercial tranches have tenors of 10 years and the export credit tranches tenors of 17.5 years (MEED 4:11:05). Riyad Bank is acting as overall co-ordinating bank on the transaction. Financial close is targeted for late December. The key project agreements on the Shuaibah project were signed between Water & Electricity Company (WEC)and a local/Malaysian developer consortium of ACWA Power, Malakoff Berhad, Khazanah Nasionaland Tenaga Nasional Berhadin mid-November (MEED 2.12.05, Cover Story).
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