Taweelah B gets more financiers

Three Abu Dhabi-based banks have joined the group of lead arrangers financing the Taweelah B independent water and power project.

The deal is expected to achieve financial close next month, bankers said.

Abu Dhabi Commercial Bank (ADCB), the National Bank of Abu Dhabi (NBAD) and First Gulf Bank (FGB) are part of the MLA group along with ANZ Investment Bank, BNP Paribas and Kreditanstalt Fuer Wiederaufbau.

"ADCB, NBAD and FGB have joined the MLA group and these banks may now underwrite anything between $60 million to $70 million (Dh220.2 million to Dh256.9 million) each. The underwriting amount is now lower following many banks forming part of the underwriting group," a senior banker said.

"The financial close is expected by the end of this month or April at the latest and the facility will go into general syndication later in the year when we expect more banks to come in," he said.

The debt financing for the Taweelah B project is about $2.5 billion (Dh9.17 billion) and that includes a senior debt of about $2 billion (Dh7.34 billion) and $500 million (Dh1.83 billion) equity bridge financing.

Of the senior debt of some $2 billion, the Japan Bank of International Cooperation is financing $1.2 billion (Dh4.40 billion) while a consortium of local, regional and international banks is underwriting $856 million (Dh3.14 billion). There is also a standby facility of $29 million (Dh106.7 million).

Bankers said the sponsors, led by Marubeni Corp and the Abu Dhabi Water and Electricity Authority (Adwea), are in talks with banks for the $500 million bridge financing.

"Talks are under way but nothing has yet been finalised," said the banker.

The main tranche is a 20-year debt with a step-up pricing starting at 115 basis points over Libor.

HSBC is the financial adviser for Taweelah B.