Ras Laffan C reaches financial close

05 August 2008
Financial close on the $3.5bn Ras Laffan C independent water and power project (IWPP) reached financial close on 5 August, after being hit by delays in finalising the documentation and the addition of a $250m Islamic finance tranche.

The deal is split between a commercial bank tranche of $1.5bn, a $1.5bn Japan Bank for International Corporation (JBIC) loan, a $300m facility guaranteed by Italy's Gruppo Sace, and the $250m Islamic loan, all with a 25-year tenor (MEED 23:7:08).

The Islamic facility is being provided by Qatar Islamic Bank and the Islamic Development Bank.

Twenty other regional and international banks have financed the commercial bank debt, which is priced at 105 basis points above the London interbank offered rate (libor), rising to 160 basis points over libor during the life of the debt.

The deal was signed about two weeks after the original schedule.

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