Qatar seeks to keep pricing low for Ras Laffan C plant

01 April 2008
Qatar Petroleum (QP) is seeking to use the financing package for the Fujairah 2 independent water and power plant as a benchmark for financing its Ras Laffan C (IWPP).

Project finance bankers say QP is trying to keep debt costs on the Ras Laffan C project as low as possible by using the Fujairah project as price guide. The Fujairah project, which finalised its financing in December 2007, was priced at 65 basis points above the London interbank offered rate (Libor), rising to 110 basis points.

Royal Bank of Scotland, financial adviser on the project, is hoping to get a group of around 30 banks to each take on $75m. The $3bn project includes a JBIC loan of $1.5bn. The debt will have a 25-year tenor, and financial close is expected in June. Banks have until 25 April to commit to the financing.

QP will hold a 20 per cent stake in the project when it is completed, with Qatar Electricity and Water Company owning 40 per cent, and Suez Energy and Marubeni, the project developers, owning 20 per cent.

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