Bahrain’s Al Ezzel closes $243m financing facility
MANAMA: Al Ezzel Power Company, a key electricity supplier in Bahrain, has announced the closing of a $243 million new financing facility.
This is a landmark achievement in the Bahrain infrastructure financing market, as the entire financing was extended by local and regional banks, said a statement from the company.
The new financing was provided by Arab Banking Corporation (Bank ABC), National Bank of Kuwait, Mashreq Bank, National Bank of Bahrain and Ahli United Bank.
All of these banks are present in Bahrain and have in-depth knowledge of the market.
The new financing replaces the original one provided in 2004 by a consortium of nine international banks and only two regional banks.
Al Ezzel was awarded a 950MW power project in July 2004 by the government, following an international competitive tendering process that attracted five bids and resulted in a record low tariff.
The project was contracted on a build, own, operate basis, utilising gas-fired combined cycle gas turbine technology supplied by Siemens.
The company started commercial operations in June 2007, and Al Ezzel today accounts for about one quarter of Bahrain electricity needs.
The project was initially developed by French multinational electric utility company Engie and Gulf Investment Corporation, a Kuwait-based venture capital firm owned equally by the six Arabian Gulf governments.
The Social Insurance Organisation joined soon thereafter and these three parties are shareholders of Al Ezzel today.
A celebratory event was held last Thursday at Capital Club Bahrain with representatives of shareholders, financing banks and company officials.
Talking about the refinancing deal, Al Ezzel chairman Shafic Ali said, “This is a testimony to the confidence of the local and regional banks in the long-term credit worthiness of infrastructure projects in Bahrain. The new financing prepaid the balance of the loans provided in 2004 and extends the final maturity date to 2026.”
Engie regional head of acquisitions, investments and financial advisory Cedric Girod said the strength of the asset was demonstrated by the significantly higher liquidity appetite than expected, allowing the promoters to implement an optimum refinancing structure within a short time frame.
“Al Ezzel has performed at a high level of operational availability and efficiency and produced consistently solid financial results,” he added.
Commenting on behalf of the lending group, Bank ABC group head of specialised finance Saber Ayadi said the group was pleased with its continuous contribution and strong added value to finance the power sector in Bahrain.
Source: http://www.gdnonline.com/Details/424606/Bahrain%E2%80%99s-Al-Ezzel-closes-$243m-financing-facility
