UAE Taweelah A2 completes $541m refinancing deal

22 March 2004 – Abu Dhabi’s first independent water and power project – the Taweelah A2 – successfully completed a $541m landmark refinancing, comprising conventional and Islamic financing. Emirates CMS Power Co, the special purpose company set up in 1998 for the project, signed the refinancing agreement – the first in the Gulf – with several banks led by the National Bank of Abu Dhabi (NBAD).

Sheikh Diab bin Zayed Al Nahyan, Chairman of the Abu Dhabi Water and Electricity Authority, and Abdulla Saif Al Neami, Director of Privatisation, signed on behalf of the government while Brian Jackson, Managing Director of Emirates CMS Power Co and Tom Elward, Senior Vice President of CMS Energy, signed on behalf of their respective companies along with representatives of the banks.

The 16-year facility includes a $135m bond issue by NBAD out of its $165m underwritten amount and a $150m Islamic tranche. NBAD was a mandated lead arranger and a regional coordinator. The other banks which have underwritten various amounts include the Abu Dhabi Investment Co ($30m), the Arab Bank – Jordan ($25m), ANZ, Barclays Bank, Baryerische LandesBank, HSBC, National Bank of Kuwait, Nord Deustche Bank, Societe Generale and Union National Bank.

The Islamic tranche was underwritten by Abu Dhabi Islamic Bank along with Dubai Islamic Bank and Kuwait Finance House. “NBAD has underwritten a total of $165m and will issue a bond out of this for $135m,” a senior NBAD official told Gulf News yesterday.