Al Dur Power & Water Company, the largest power generation and water desalination company in Bahrain, celebrated today the successful closure of a USD 1.3 billion refinancing facility provided by a syndicate of 20 banks including local, regional and international banks. The celebration was held with the participation of H.E. Shaikh Mohammed bin Khalifa Al Khalifa, the Minister of Oil, H.E. Cecile Longe, the French Ambassadress to Bahrain, a representative from the German Ambassador to Bahrain and representatives from the Company, shareholders, financing banks and other key stakeholders.
The refinancing facilities extend up to 14 years and include USD 450 million of conventional facilities and USD 850 million of Islamic facilities. The new financing replaces the one originally provided in 2009, which amounted to USD 1.6 billion. Banks participating in the transaction include: Ahli United Bank, Al Rajhi Bank, Arab Bank, Bank ABC, ABC Islamic Bank, Arab National Bank, Arab Petroleum Investments Corporation (APICORP), Banque Saudi Fransi, BNP Paribas, Crédit Agricole CIB, Export Development Canada, Gulf International Bank, KFW IPEX-Bank, Kuwait Finance House (Bahrain), Mashreqbank, MUFG, Riyad Bank, National Bank of Kuwait - Bahrain Branch, Société Générale, Standard Chartered Bank and The Saudi National Commercial Bank.
Al Dur accounts for one-third of the country's power and water production with a combined capacity of 1,234 MW 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. Other shareholders including the Social Security Organisation, Bahrain Islamic Bank, Capital Management House, First Energy Bank, and Bunya Infrastructure Fund joined in 2009. The Company benefits from a 25-year power and water purchase agreement entered into with EWA.
Commercial operations started in early 2012 and the plant was officially inaugurated in April 2012 by His Majesty King Hamad bin Isa Al Khalifa and the Prime Minister HRH Prince Khalifa bin Salman Al Khalifa.
The original financing won the “2009 Deal of the Year Award” from Project Finance magazine and praise from various sources for being the first project finance deal to close after the onslaught of the 2008 financial crisis. Similarly, the new financing has also won an award as the “2018 Refinancing Deal of the Year”. This is an award that Al Dur shares with its sister company Al Ezzel Power Company, which also undertook a successful refinancing in 2018 and is owned by Engie, Gulf Investment Corporation and the Social Insurance Organisation.
“This is another landmark achievement for 2018 in Bahrain,” said Shafic Ali, Chairman of Al Dur. “We have substantial participation from Bahrain-based banks and from banks in Saudi Arabia. We also have seven international banks from diverse geographies, ranging from Canada to Europe and Japan, and a total of 14 banks from our original lenders have participated in the current refinancing underscoring their continued confidence and commitment to Al Dur and the Kingdom.”
“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 Bahrain, Saudi and regional and international banks for a strategic asset of the Bahrain economy and for its lead sponsors ENGIE and Gulf Investment Corporation.”
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About ENGIE
ENGIE Middle East, South & Central Asia and Turkey (MESCAT) has a regional presence of almost 30 years. ENGIE is the regional leading independent power & water producer with a gross capacity of 32 GW of power and 5.5 million m3/day of water. The portfolio includes 810 MWp of solar PV and 280 MW wind in India. In Turkey, ENGIE has 370,000 customers in gas distribution via IZGAZ and is active in energy retail, trading and origination. ENGIE owns 40% of Tabreed, the regional leader in district cooling, which is a key regional development platform. The Group is also the GCC’s leading Facility-Management provider via Cofely-Besix.
ENGIE is a global energy and services group, focused on three core activities: low-carbon power generation, mainly based on natural gas and renewable energy, global networks and customer solutions. The Group has 150,000 employees in 70 countries. 2017 turnover: 65 billion Euros. Listed in Paris and Brussels (ENGI), the Group is represented in the main financial (CAC 40, BEL 20, Euro STOXX 50, STOXX Europe 600, MSCI Europe, Euronext 100, FTSE Eurotop 100, Euro STOXX Utilities, STOXX Europe 600 Utilities) and extra-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris - World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance). To learn more: www.engie.com
About Gulf Investment Corporation (GIC)
GIC was established in 1983 and is equally owned by the six member states of the Gulf Cooperation Council. GIC provides a range of financial services that support the development of private enterprise and economic growth in the region.
GIC has extensive experience in, and commitment to, the power and water sector in the Region. GIC has been involved in the power and water sectors in the GCC from its inception. GIC is a co-developer of six energy infrastructure projects in the GCC with a total asset base of approximately USD 9.6 billion, namely:
- Co-developer and shareholder (45%) in Al-Ezzel Power Company, the first IPP in the Kingdom of Bahrain with 950 MW power capacity and circa USD 500 million total cost;
- Co-developer and shareholder (25%) in Al Dur Power & Water Company in Bahrain with 1,234 MW power and 48 MIGD desalination capacity and circa USD 2.1 billion total cost;
- Co-developer and shareholder (20%) in Jubail Water & Power Company, the largest independent water and power plant in the world with 2,750 MW power and 176 MIGD desalination capacity and USD 3.2 billion total cost;
- Co-developer and shareholder (20%) in Shuqaiq Water & Power Company the second WEC IWPP with 850 MW power and 48 MIGD desalination capacity and USD 1.9 billion total cost;
- Shareholder (10%) and board member in Ras Laffan Power Company, the first IWPP project in Qatar, with 750 MW power and 40 MIGD desalination capacity and USD 700 million of total cost; and
- Co-developer and shareholder (24%) in Bahrain LNG, the first private LNG receiving and re-gasification terminal in the Middle East with a capacity of 800 million standard cubic feet per day and USD 1 billion of total cost.
For more information about Gulf Investment Corporation, visit: www.gic.com.kw
Press contact for ENGIE:
Majda Soussi
ENGIE Middle East, South & Central Asia and Turkey
External Communication and Media relations Manager
ENGIE Middle East South and Central Asia, Turkey
Business Central Tower B- 48th Floor - Media City
PO BOX 66235-Dubai, United Arab Emirates
Tel +971 44570777
Press contact for Gulf Investment Corporation:
Meshary Al-Judaimi
Division Head - Utilities, Financial Services and Telecoms
Gulf Investment Corporation
Kuwait
Tel +965 2222 5170 (direct)
Press contact for Al Dur Power & Water Company:
Hussain Ali Haji-Ali
Chief Financial Officer
Al Dur Power & Water Company B.S.C. (c)
Orchid Business Center, Al Seef District
Manama, Bahrain
Tel +973 17 561 888
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