Over EUR 3.5 billion to finance the largest combined cycle power plants in the world
Deutsche Bank, HSBC and KfW IPEX-Bank structure and arrange ECA-underwritten financing for 17 international banks
German technology expert Siemens to deliver its latest generation of gas turbines to Egypt for the three high-efficiency power plants
Deutsche Bank, HSBC and KfW IPEX-Bank have jointly structured and arranged the Hermes-underwritten financing for the Beni Suef, Burullus and New Capital COGAS plants in Egypt. A consortium of 17 international banks is raising the debt capital of EUR 3.5 billion. For exporter Siemens, the Egyptian order is the biggest in the company's history. The total investment cost for the three power plants will run to EUR 6 billion.
Together, Deutsche Bank, HSBC and KfW IPEX-Bank are acting as Coordinating Initial Mandated Lead Arrangers (CIMLAs) for the financing. The banks have been mandated for the project by the state-owned Egyptian Electricity Holding Company (EEHC). The CIMLAs are also acting as co-bookrunners for the syndication of the Hermes-covered finance with Deutsche Bank acting as coordinating bookrunner. KfW IPEX-Bank assumes an additional role as Hermes Agent and Facility Agent. The coordinating bank for environmental and social project due diligence for the Beni Suef and Burullus power plants is Deutsche Bank. HSBC is acting as environmental coordinator for New Capital.
Given the transaction's size and complexity the CIMLA's swift execution has been impressive. The mandate was awarded in June 2015 following a Memorandum of Understanding signed by Siemens and Egypt at the Sharm-El-Sheikh conference in March of the same year and Egyptian President Abdel Fattah el-Sisi's subsequent state visit to Germany. In November 2015, the loan agreement was signed for the first project in Beni Suef. March 2016 then saw the financial close for the other two power plants, Burullus and New Capital. The loans are guaranteed by the Egyptian Finance Ministry.
The core component of each of the natural gas-fired combined cycle power plants, which are to be built at three different locations across the country, will be eight latest-generation Siemens gas turbines. The H-Class, as it is known, is a maximum efficiency turbine, thus providing not only a reliable energy supply but also a greener one.
The three large power plants, all of the same design, will each have a 4,800 megawatt production capacity, with a combined capacity of 14.4 gigawatts. Upon completion in 2018 they will be the largest in the world. The projects will boost Egypt's electricity production by 50% and make a significant contribution to the country's national economic development.
Press contact:
Deutsche Bank
Nicolas Nonnenmacher
nicolas.nonnenmacher@db.com
Phone +49 (0)69 910 41749
Stuart Haslam
stuart.haslam@db.com
Phone +971 (0) 4 4283 860
HSBC
Zeyad MOURAD
zeyad.mourad@hsbc.com
Phone +202-2529-1113
KfW IPEX-Bank GMBH
Thomas Krick
thomas.krick@kfw.de
Phone +49 (0) 69 7431 84
About Deutsche Bank
Deutsche Bank provides commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals. Deutsche Bank is Germany's leading bank, with a strong position in Europe and a significant presence in the Americas and Asia Pacific.
Disclaimers
This release contains forward-looking statements. Forward-looking statements are statements that are not historical facts; they include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our revenues and in which we hold a substantial portion of our assets, the development of asset prices and market volatility, potential defaults of borrowers or trading counterparties, the implementation of our strategic initiatives, the reliability of our risk management policies, procedures and methods, and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of 11 March 2016 under the heading "Risk Factors". Copies of this document are readily available upon request or can be downloaded from www.db.com/ir.
© Press Release 2016
