Hidd IWPP agreements signed as Sidem proceeds

04 May 2006

The financing agreements for the brownfield Hidd independent water and power project (IWPP) have been signed and the notice to proceed given to France's Sidem for the engineering, procurement and construction (EPC) contract.

The $400 million commercial tranche is being provided by a six-strong bank group. Royal Bank of Scotland acted as documentation bank and bookrunner, Gulf International Bank, Standard Chartered Bank and Sumitomo-Mitsui Banking Corporation were also bookrunners, Mizuho Financial Group was the global facility agent and Kreditanstalt fuer Weideraufbau was the technical insurance agent.

The 20-year deal is priced at 90-150 basis points. A $175 million equity bridge is also being provided while Japan Bank for International Co-operation (JBIC) is contributing $600 million. Conclusion of the deal follows the January signing of the key project agreements by a developer team comprising the UK's International Power, Belgium's Suez Tractebel and Japan's Sumitomo Corporation in January (MEED 27:1:06).

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