The 10 banks are ANZ Investment Bank
, Bayerische Landesbank
, Gulf International Bank
, ING Bank
, Mizuho Financial Group
, National Bank of Bahrain
, Royal Bank of Scotland
and Standard Chartered Bank
. They join HSBC
and Societe Generale
, which backed the winning bid for the Al-Ezzal independent power project (IPP) by Belgium’s Tractebel
and Kuwait-based Gulf Investment Corporation
. The package will be structured as a club deal.
The facility is split between a $373 million term loan and a $125.7 million equity bridge loan. The 20-year debt – one of the longest tenor transactions to be completed in the Gulf – has a step-up pricing structure which starts at 120 basis points (bp) over Libor for the three-year construction period, drops to 110 bp for years four-nine, rises slightly to 115 bp for years 10-12, then more steeply to 150 bp for years 13-15, to 160 bp for years 16-18 and finally to 175 bp for years 19 and 20. The three-and-a-half-year equity bridge loan has a margin of 40 bp over Libor (MEED 6:8:04).