Bahrain’s Al Dur Power and Water Company in $1.3bn refinancing

Bahrain’s Al Dur Power and Water Company in $1.3bn refinancing
Published: 3 January 2019 - 8:42 a.m.
By: Baset Asaba

Al Dur Power & Water Company, one of the largest power generation and water desalination companies in Bahrain, has announced to close a US$1.3bn refinancing, replacing the one originally provided in 2009.

The new financing was provided by a syndicate of 20 banks including local, regional and international banks. The refinancing facilities extend up to 14 years and include US$450mn of conventional facilities and US$850mn of Islamic facilities.

Al Dur accounts for one-third of the country's power and water production with a combined capacity of 1,243 GW of power and 48 MIGD of water.

The right to develop, finance and operate the project was awarded in 2008 by the Electricity and Water Authority (EWA) of Bahrain to a consortium consisting of Engie and Gulf Investment Corporation. Commercial operations started in early 2012. The company benefits from a 25-year power and water purchase agreement entered into in 2009 with EWA.

Shafic Ali, chairman of Al Dur, said, “We have substantial participation from Bahrain-based banks and from Saudi banks. We also have seven international banks, ranging from Canada to Europe and Japan.”

“This was a challenging transaction implemented in a volatile market environment,” noted Cedric Girod, head of acquisitions, investments and financial advisory at ENGIE Middle East, South & Central Asia and Turkey.

Banks participating in the transaction include Ahli United Bank, Al Rajhi, Apicorp, Arab Bank, Arab Banking Corporation, Arab National Bank, GIB, KFH, MUFG, Banque Saudi Fransi, BNP Paribas, Credit Agricole-CIB, Export Development Canada, KFW IPEX, Mashreq, NCB, NBK, Riyad Bank, Societe Generale and Standard Chartered Bank.

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