Syndication has started of a $170 million project loan being arranged by The Chase Manhattan Bank towards the $750 million Izmit water supply project, according to Istanbul banking sources. They expect syndication to close by the end of November.
The seven-year loan will probably carry interest of around 200 basis points above the London interbank offered rate (Libor), and a management fee of around 100 basis points, the sources said. The build-operate-transfer (BOT) project involves a private sector franchise for the financing, construction and operation of a utility. It is being proposed by a venture led by the UK's Thames Water.
Signing is expected in the first half of November for another BOT, commercial financing arranged by Chase, for a DM 2,100 million ($2,936 million), 672-MW hydro-electric dam planned at Birecik on the Euphrates river in the southeast. Syndication of a DM 465 million ($650 million) loan recently closed oversubscribed, but held at the original amount (MEED 8:9:95).
The eight-year loan carries interest of 225 basis points over Libor, and additional fees of 75-100 basis points. The BOT venture for the Birecik dam is led by Germany's Philipp Holzmann and the local Gama.
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.