10 March 2016
Clifford Chance advises on over US$1 billion refinancing for 1,730MW PP11 gas-fired independent power project in Saudi Arabia
International law firm Clifford Chance advised Dhuruma Electricity Company, whose sponsors are ENGIE, Saudi Electricity Company, Sojitz Corporation and Al Jomaih Holding Company, on the refinancing of facilities in excess of US$1 billion, which reached financial close on 1 March 2016.
The refinancing facilities were provided on a combined conventional and Islamic basis, with the two classes of financiers sharing the transaction security package.
The dollar-denominated international tranche of in excess of US$500 million was provided by a development bank (KfW IPEX-Bank GmbH), an export credit agency (Export Development Canada) and a group of international commercial banks. Of the international banks, Sumitomo Mitsui Banking Corporation and Mizuho Bank, Ltd. took the largest tickets, of over US$100 million each. The other international banks were Sumitomo Mitsui Trust Bank, Limited (London Branch), Mitsubishi UFJ Trust and Banking Corporation, Société Générale and Standard Chartered Bank.
The Saudi riyal-denominated istisna'a-ijara tranche of in excess of SAR1.4 billion was provided by Banque Saudi Fransi, Samba Financial Group and The Saudi British Bank (SABB), each of which took an equal participation.
The Saudi riyal-denominated wakala-ijara tranche of in excess of SAR900 million was provided by The National Commercial Bank (Al Ahli) and Al Inma Bank, each of which took an equal participation.
Riyadh Head of Finance for Clifford Chance, Mohamed Hamra-Krouha commented: "We are delighted to have helped Dhuruma Electricity Company and its sponsors achieve this refinancing, this being one of the largest of its kind transactions in Saudi Arabia so far this year and a transaction which our client confirmed was deemed essential for all of the sponsors."
"Our Riyadh team continues to advise clients across the Saudi energy and resources sector who continue to tap international and domestic markets in this hybrid manner allowing Saudi corporations to borrow at competitive rates. Clifford Chance is well equipped to provide Saudi companies as well as Saudi and international lenders with on-the-ground expert support not only in the Kingdom but across all the major financial centres around the world" added Hamra-Krouha.
The Clifford Chance team was led by Mohamed Hamra-Krouha (Partner, Riyadh) and included Kola Balogun (Senior Associate, Riyadh), Yasser Al-Hussain (Senior Associate, Riyadh), Mazin Al Zamil (Associate, Riyadh) and Sahal Khalawi (Associate, Riyadh).
The Clifford Chance Riyadh team continues to advise on some of the Kingdom's most prominent deals including advising: on over US$2 billion funding for SEC (with conventional and Islamic tranches), ACWA Power on SAR1.11 billion facilities, a group of 30 global and regional lenders on US$10 billion revolving credit facilities (with conventional and Islamic tranches) to Saudi Aramco, Saudia Aerospace Engineering Industries on a SAR3.5 billion murabaha facility and the lenders on a SAR1.875 billion Islamic facility for a real estate development project in Makkah.