Islamic tranche for Shuweihat

02 November 2001

A new dimension is to be added to the proposed debt financing for Abu Dhabi's Shuweihat independent water and power project (IWPP). Abu Dhabi Islamic Bank (ADIB)is understood to be in advanced talks with the project sponsors and the lead arrangers for the mandate to arrange a $250 million Islamically structured tranche.

The introduction of an Islamic tranche could reduce the conventional debt package to just over $1,000 million, easing the sell-down process.

'We are still on track for reaching financial close by year-end,' says a banker close to the deal. 'Appetite for what has become a combined sub-underwriting and general syndication is strong and it's looking like the deal is going to be oversubscribed.'

As a result of fluctuating market conditions following the 11 September suicide attacks on New York and Washington, the pricing structure of the deal, and fees offered to banks participating in the sub-underwriting have been altered (MEED 9:11:01; 19:10:01).

The lead arrangers for the debt finance are Barclays Capital, Citibank, Bank of Tokyo-Mitsubishi, Royal Bank of Scotland, Kreditanstalt fuer Wiederaufbau, National Bank of Abu Dhabiand Abu Dhabi Investment Company.

The project company for the scheme, Shuweihat CMS International Power Company, was formed by Emiri decree in early November (see Power & Water).

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