Bahrain was due to issue the preliminary information memorandum (PIM) for the $650 million financing package for Bahrain Petroleum Company (Bapco)before the end of July.‘All three tranches will be discussed in the document, but banks will only be asked to submit proposals for the commercial and Islamic tranches,’ says a banker close to the transaction. ‘We are looking at financial close in November.’ The PIM is expected to describe a $150 million, 12-year commercial tranche – which could be used to refinance a similarly sized bridge loan provided by BNP Paribas and HSBC. The two banks are acting as structuring agents on the facility (MEED 16:7:04). ‘There is a possibility the commercial tranche will be increased in size if it gets a warm response,’ says the banker. ‘Subject to covenants and ratios there is sufficient security to increase it and the government could do so to cover the cost of additional environmental contracts such as the desulphurisation unit.’ A $200 million, Islamically structured facility will also be offered. It is expected that Kuwait Finance Housewill provide $100 million, with the remaining $100 million coming from a consortium comprising Abu Dhabi Islamic Bank, BNP Paribas, HSBC and the Islamic Development Bank. The third tranche is split into a $150 million loan from the Japan Bank for International Co-operation and a $150 million component covered by Nippon Export & Investment Insurance (NEXI). ‘The Japanese section is explained in the PIM but the banks will not be invited to bid until negotiations have been completed with the Japanese agencies,’ says the banker.