Saudi Arabia’s Dhuruma Electricity Company has completed a $1.2bn refinancing deal.

Dhuruma owns the PP11 independent power plant (IPP). It is 50 per owned by utility Saudi Electricity Company, 20 per cent by France’s Engie, 15 per cent by Japan’s Sojitz Group and 15 per cent by local Aljomaih Holding.

The banks who extended around $150m each of new debt include Saudi British Bank (Sabb), Banque Saudi Fransi, Samba Financial Group and National Commercial Bank (NCB) on the local tranche.

There was a roughly even split with the international tranche, including Export Development Canada, Germany’s KfW, Japan’s Mitsubishi UFG Financial Group, Mizuho, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank and the UK’s Standard Chartered.

One source added that the local tranche priced at between 140 and 250 basis points above the Saudi interbank rate.

The developers originally secured $1.5bn in project finance in 2010 with a debt to equity ratio 70:30.

The $530m commercial tranche included France’s Credit Agricole, the UK’s Standard Chartered, France’s Societe Generale, Export Development Canada, KfW, Italy’s Intesa, Samba, and France’s CIC. The $646m Islamic tranches involved Saudi Fransi, Samba, Alinma and NCB. The Export Import Bank of the United States provided $384m in an export credit agency tranche.

A similar $2bn refinancing deal from Rabigh Electricity Company, led by local Acwa Power, is still in negotiations.

Engie is also considering refinancing two IPPs in Oman.