Q-Power syndication wrapped up

15 July 2005
Syndication of the $750 million debt package for the Q-Powerconsortium of Qatar Electricity & Water Company (QEWC), the UK's International Power (IP)and Japan's Chubu Electric Power Company, which won the state's second independent water and power project (IWPP) has been finalised, with 22 banks signing up. The mandated lead arrangers (MLAs) were Bank of Tokyo-Mitsubishi, Calyon, Gulf International Bank, HSBC, Qatar National Bankand Royal Bank of Scotland(MEED 8:4:05).

Tickets of $40 million and $20 million were offered carrying fees of 75 basis points (bp) and 50 bp over Libor. However, the sell-down raised about twice as much as the MLAs were looking for so the syndication banks have been scaled back considerably. It is understood that $400 million-500 million was sold.

The 20-year debt has a margin of 105 bp over Libor pre-completion, which drops to 100 bp post-completion before gradually stepping up to 150 bp. Financial close on the IWPP, which will have capacity of 1,025 MW and 60 million gallons a day of water, was reached in early April. QEWC has a 55 per cent stake in the project company, IP holds 40 per cent and Chubu owns 5 per cent. First power is due by April 2006. Qatar General Electricity & Water Corporation (Kahramaa) is handling the project (MEED 8:4:05).

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