Consortium raises $1.7bn for Bahrain's Al Dur project

Dubai-based Mashreq bank, Standard Chartered Bank, and Calyon have arranged $1.7 billion (Dh6.2bn) financing for Bahrain's Al Dur independent water and power project, bankers close to the deal said. The project has attracted support from a mix of international, regional and Islamic banks and export credit agencies and it is the first major new project financing to close in the Gulf in 2009. The financing includes a $1.2bn international facility, which is structured as an eight-year, non-recourse club term loan. $420 million is covered by Korean export credit agency Korea Export Insurance Corporation, the bankers said. There is also a $300m Islamic loan and a $200m US Import-Export bank facility, ranking pari passu with the international tranche, they added. The margin ranges from 250-350 bps over Libor. Commitments were received from Al Rajhi, Arab National Bank, Arab Bank, Bank of Tokyo Mitsubishi UFJ, Banque Saudi Fransi, BayernLB, Calyon, CIC Credit Mutuel, Fortis, HSBC, KBC, KfW-Ipex, Mashreq, National Australian Bank, Riyad Bank, Societe Generale, Standard Chartered Bank and WestLB, the bankers said. The project is equally owned by a consortium of GDF Suez and Gulf Investment Corporation. Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here .