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29 September 2003 - The $1.777bn financing for Abu Dhabi's fourth independent water and power project (IWPP), the Umm Al Nar, has ended with the closure of the general syndication of long-term debt. One regional bank and two European banks have taken tickets totalling $54.5m as part of the general syndication.
The banks concerned are the Bank of Bahrain and Kuwait, and KBC and Deka Bank. "The primary syndication is closed and further sell-downs will be on an individual basis," a senior banker involved with the financing said. "The overall financing has thus been successfully closed and syndicated."
The $1.777bn facility, the largest and complex project financing, includes a $855m conventional loan for 20 years, another conventional loan of $232m for five years and a long-term $250m Islamic tranche. The conventional facility was lead arranged by Gulf International Bank, National Bank of Abu Dhabi, HSBC, First Gulf Bank, West LB, Sumitomo Mitsui Banking Corp and ING. Abu Dhabi Islamic Bank and Dubai Islamic Bank arranged the Islamic tranche.
Although the general syndication has been successfully closed, it took time for the sell-down. "The response was slow because of several factors," said bankers.
The UK's International Power and two Japanese firms will develop the project. The Umm Al Nar complex, east of Abu Dhabi can generate 1100 MW of power and 100 million gallons per day of water. Another 62.5 million gpd of desalination capacity is under construction. The project will entail purchase of the additional capacity and two recently commissioned units with associated infrastructure and the development, financing and construction of 1000 MW of new capacity and additional water generation. Commissioning of the first power unit is set for 2005 and full operations will start in summer 2006.
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