Calyon, Citigroup, and Sumitomo Mitsui Banking Corporation are acting as mandated lead arrangers on the deal and were committed before the credit crunch saw margins on debt start to increase. Despite this, they are confident the F2 debt can be marketed on the original terms agreed before the summer.

The project financing involves a $900m 22-year-tenor commercial bank tranche, a 2.5-year $450m bridge loan and a $1.3bn loan from Japan Bank for International Cooperation.

The F2 plant, which will provide 2,000 MW and 130 million gallons a day of desalinated water, will be built in the emirate of Fujairah with construction due to start before the end of the year.