Total project costs are estimated at about $2,500 million and the sponsors are looking for a debt equity split of 80:20, including conventional and Islamic finance and export credits. The conventional facility will be worth $947 million, including a $72 million stand-by facility, with banks asked to provide sub-underwriting commitments of $110 million with a take-and-hold target of $75 million. A general syndication is likely to be launched after financial close.
The Islamic tranche of $225 million will be aimed solely at local institutions and denominated in Saudi riyals. Both commercial tranches have a tenor of 20 years. Germany’s Hermes will provide cover of $400 million while Export-Import Bank of Korea (Kexim) will extend a $402 million direct loan. Both export credits portions have a tenor of 17.5 years.
is acting as overall co-ordinating bank on the transaction. The bookrunners are: Arab Bank
and ABN Amro
for regional and international banks on the conventional and Hermes tranches; Riyad Bank
on the conventional and Islamic tranches for local banks; and Al-Rajhi Banking & Investment Corporation
jointly for the Islamic tranche. The other core mandated lead arrangers (MLAs) are Saudi Hollandi Bank
and Kexim. Trowers & Hamlins
is legal adviser to the developers; Germany’s ILF Consulting Engineers
is technical adviser.
The power and water purchase agreement (PWPA) is due to be signed between Water & Electricity Company
and the project company on 15 November. The developer consortium is a local/Malaysian team of Acwapower
, Malakoff Berhad
, Khazanah Nasional
and Tenaga Nasional Berhad