The owners of the Shuweihat 2 power and water plant in Abu Dhabi are preparing to launch an $800m bond in October as part of a plan to refinance the debt on the project.

Launch of the bond deal follows agreement with lenders on the repricing of the bank debt. The bond will be used reduce debt by about $600m, split equally between a $1bn Japan Bank for International Corporation tranche and a $950m loan provided by banks. Originally, the bond was expected to be issued in September.

In the original deal, signed in 2009, the loan pricing started at 260 basis points above the London interbank offered rate (Libor), rising to 350 basis points above Libor, making it one of the most expensive deals signed for an Abu Dhabi power project in recent times. The new terms will lower the pricing to start at about 175 basis points above Libor, rising to 250 basis points.