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.

Riyad Bankis acting as overall co-ordinating bank on the transaction. The bookrunners are: Arab Bankand ABN Amrofor regional and international banks on the conventional and Hermes tranches; Riyad Bankon the conventional and Islamic tranches for local banks; and Al-Rajhi Banking & Investment Corporationjointly for the Islamic tranche. The other core mandated lead arrangers (MLAs) are Saudi Hollandi Bankand Kexim. Trowers & Hamlinsis legal adviser to the developers; Germany’s ILF Consulting Engineersis technical adviser.

The power and water purchase agreement (PWPA) is due to be signed between Water & Electricity Companyand the project company on 15 November. The developer consortium is a local/Malaysian team of Acwapower, Malakoff Berhad, Khazanah Nasionaland Tenaga Nasional Berhad(MEED 28:10:05).

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