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Financing completed on Umm Al Nar IWPP

2 July 2003 – The International Power led consortium today announced the completion of financing arrangements for the acquisition and expansion of the Umm Al Nar power and water desalination plant in Abu Dhabi.

International Power’s partners are Abu Dhabi Water and Electricity Authority and Tokyo Electric Power Company and Mitsui & Co. Limited.

“The successful completion of this financing is a considerable achievement given the uncertainty in the region that followed the war in Iraq,” said David Crane, Chief Executive Officer of International Power. “We are very thankful to our partners and the lenders for their continued support and commitment to the project and we look forward to serving ADWEA and the people of Abu Dhabi with our second major power and water desalination asset in the UAE,” he added.

The consortium has secured a total financing package of $1.77bn, which represents the largest power sector financing executed in the Middle East this year.

The financing structure comprises two non-recourse loans, a $1,100m 20-year term loan and a $230m 5-year term loan, together with $ 440m equity bridge facility. The 20-year term loan includes a $250m Islamic tranche, which has been arranged by Abu Dhabi Islamic Bank.

International Power has a 20 per cent equity interest in the project and its total equity commitment to the project is estimated at a maximum of £56m($93.1m). This amount is covered under the equity bridge loan and will be payable by International Power in 2008.

Lead arrangers for this financing include Abu Dhabi Commercial Bank, Abu Dhabi Investment Company, Abu Dhabi Islamic Bank, Bayerische Landesbank, First Gulf Bank, Gulf International Bank, HSBC, ING, Kreditanstalt fur Wiederaüfbau, Mizuho Financial Group, National Bank of Abu Dhabi, Sumitomo-Mitsui Banking Corporation and The Bank of Tokyo-Mitsubishi and West LB.

The entire power and water output from the Umm Al Nar plant is contracted to the Abu Dhabi Water and Electricity Company (ADWEC) under a 23 year Power and Water Purchase Agreement.

This acquisition is expected to be immediately earnings accretive for International Power.