Iraq’s Qaiwan Group has secured two loans worth a total of $105m to help fund the development of its 442MW Bazian Power Plant.

Deutsche Bank, the mandated lead arranger (MLA), structuring bank and facility agent has arranged an eight-year $75m buyer credit with the Dubai branch of Lebanon’s Bankmed, which is acting as co-MLA and co-lender.

The deal is backed by Compagnie Française d’Assurance pour le Commerce Extérieur (Coface), which manages public export guarantees on behalf of the French state, acting as France’s Export Credit Agency. US-based GE has arranged a five-year, $30 million commercial loan.

Dubai-based CT&F Consulting DMCC acted as financial advisor to Qaiwan Group during the financing negotiations.

Commenting on the deal Saad Hasan, the CEO of Qaiwan Group, said the loans signalled that the international community had confidence in his company’s operations.

“Completing these landmark agreements on competitive terms despite a challenging macro-economic and social backdrop in the region is emblematic of the fact that the investment community is encouraged by what they see in Qaiwan Group – and in Kurdistan,” he said.

Qaiwan entered into a 15-year Power Purchase Agreement (PPA) with the Ministry of Electricity of the Kurdistan Regional Government (KRG) on 24 November 2013 to finance, build, own, operate and maintain the Bazian power plant in Sulaymaniyah.

In August 2014, Qaiwan Group signed a contract with Turkish EPC contractor Enka for the construction of the power plant on a site located 25 kilometres from Sulaymaniyah.

Under the contract Enka is required to build the simple-cycle 442MW power plant on a turnkey basis.

The latest loan refinances the purchase of turbines. Enka has a commercial contract with US-based GE for the supply of four gas turbines.

In a statement released on 17 March Qaiwan said the plant is nearing completion and the plant could be expanded in the future to include a combined cycle phase that would bring the plant’s total capacity to 662 MW.