Al Dur Power & Water Secures $1.2 Billion Refinancing Facility

Al Dur Power & Water Company, a prominent power generation and water desalination firm in Bahrain, has secured a $1.2 billion refinancing facility from a consortium of 17 local, regional, and international banks. This move aims to refinance the company's existing project-level debt.

The refinancing package is split into two parts: a $643 million conventional facility and a $557 million Islamic facility. The facilities extend up to 11 years, providing Al Dur with the financial stability to continue its operations.

Banks involved in this significant deal include Abu Dhabi Commercial Bank, Société Générale, Standard Chartered Bank, Al Ahli Bank of Kuwait, Ahli United Bank, Arab Bank, Bank ABC, ABC Islamic Bank, Arab Petroleum Investments Corporation, Al Salam Bank, Banque Saudi Fransi, Boubyan Bank, Gulf International Bank, Kuwait Finance House (Bahrain), Mashreqbank, National Bank of Kuwait - Bahrain Branch, and Warba Bank.

Al Dur Power & Water Company is owned by a consortium that includes France's Engie, Gulf Investment Corporation, Kyushu Electric Power Company, and Bahrain's Social Insurance Organisation. The company operates the Al Dur Independent Water and Power Project (IWPP), which has been operational since early 2012. The plant generates 1,234 megawatts of electricity and produces 48 million imperial gallons of water daily.

Why this matters: This refinancing deal has significant implications for Bahrain's energy and water sectors, as it ensures the continued operation of a critical power generation and water desalination facility. The deal's success may also have a positive impact on the country's economic growth and development.

The company benefits from a 25-year power and water purchase agreement with Bahrain's Electricity and Water Authority. This long-term agreement highlights the strategic importance of the Al Dur IWPP in meeting Bahrain's energy and water needs.

This refinancing deal marks a significant milestone for Al Dur, enabling the company to optimize its debt structure and support its ongoing operations. It reflects the project's status as an asset with no construction risk and a proven operating history.

The consortium of owners, led by Engie, Gulf Investment Corporation, Kyushu Electric Power Company, and the Social Insurance Organisation, has played a vital role in the success of the Al Dur IWPP. Engie, a global leader in low-carbon energy services, and Kyuden, one of Japan's largest utility companies, bring significant expertise and experience to the project.

As Al Dur Power & Water Company continues to play a vital role in Bahrain's power generation and water desalination sectors, this refinancing facility ensures that the company remains financially robust and capable of meeting the nation's growing energy and water demands.

Key Takeaways

• Al Dur Power & Water Company secures $1.2 billion refinancing facility.
• Facility split into $643 million conventional and $557 million Islamic parts.
• 17 local, regional, and international banks involved in the deal.
• Refinancing ensures financial stability for 11 years.
• Deal crucial for Bahrain's energy and water sectors.