Bankers arranging the $2.2bn Fujairah F2 independent water and power plant (IWPP) have said they are confident the deal will be completed before the end of 2007 without any flexibility on pricing.
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.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.