Meed | Bahrain refinances Al Dur 1 IWPP

Bahrain refinances Al Dur 1 IWPP

28 May 2024

Al Dur Power & Water Company, the project company for one of Bahrain's independent water and power projects (IWPP), has closed a $1.2bn refinancing facility provided by a syndicate of 17 local, regional and international banks.

The refinancing facilities extend up to 11 years, including a $643m conventional facility and a $557m Islamic facility.

Inaugurated in 2012, the Al Dur IWPP has a power generation capacity of 1,234MW and a water desalination capacity of 48 million imperial gallons a day.

The facilities will allow Al Dur to refinance its existing project-level debt "on terms reflecting the status of the project as an asset with no construction risk and a proven operating history".

The lenders and hedge providers, via conventional and Islamic facilities, are:

Abu Dhabi Commercial Bank
Al Ahli Bank of Kuwait
Ahli United Bank
Arab Bank
Bank ABC
ABC Islamic Bank
Arab Petroleum Investments Corporation (Apicorp)
Al Salam Bank
Banque Saudi Fransi
Boubyan Bank
Gulf International Bank
Kuwait Finance House (Bahrain)
Mashreqbank
National Bank of Kuwait – Bahrain Branch
Societe Generale
Standard Chartered Bank
Warba Bank

The company benefits from a 25-year power and water purchase agreement entered into with Bahrain's Electricity & Water Authority.

A consortium comprising Engie, Gulf Investment Corporation, Kyushu Electric Power Company (Kyuden) and the Social Insurance Organisation owns Al Dur Power & Water Company.

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Jennifer Aguinaldo