Press Releases

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22 Dec 2018

Water Company announces the closing of a USD 1.3 billion refinancing

Al Dur Power & Water Company, the largest power generation and water desalination company in Bahrain, has successfully closed a USD 1.3 billion refinancing. The new financing replaces the one originally provided in 2009.

The USD 1.3 billion 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 USD 450 million of conventional facilities and USD 850 million 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

“This is another landmark achievement for Bahrain in 2018,“ said Shafic Ali, the Chairman of Al Dur.“ We have a substantial participation from Bahrain-based banks and from Saudi banks. We also have seven international banks, ranging from Canada to Europe and Japan. A total of 14 banks from our original lenders have participated in the current refinancing.”

“This was a challenging transaction implemented in a volatile market environment,” said Cedric Girod, Head of Acquisitions, Investments and Financial Advisory at ENGIE Middle East, South & Central Asia and Turkey. “This success demonstrates the strong support of the Saudi, local, regional and international banks for a key strategic asset of the Bahrain economy and for its lead sponsors ENGIE and Gulf Investment Corporation.”

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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