Clifford Chance

Clifford Chance advises ENGIE, GIC, Kyuden and SIO on US$1.20 billion refinancing of the Al Dur Power & Water Project in Bahrain

Global law firm Clifford Chance has advised Al Dur Power and Water Company B.S.C.(C) (the "Company)" and project sponsors including ENGIE, Gulf Investment Corporation (GIC), Kyushu Electric Power Company (Kyuden), and Social Investment Organization (SIO) ("the Sponsors") on the US$1.20 billion refinancing of the Al Dur Power & Water Project in Bahrain.

• ENGIE is a world leader in low-carbon energy services and solutions. In the GCC region, ENGIE is a leading independent power and water desalination developer and operator, with a gross portfolio of 32 GW power and over 1500 MIGD water production, including the Al Dur, Al Ezzel and Al Hidd plants.
• GIC is a leading investor in power and water generation assets in the GCC region with a gross portfolio of 8 GW of power and 2.0 MCM of water production, established and wholly owned by the governments of the six GCC states.
• Kyuden is one of the largest regional utility companies in Japan supplying power and gas in the Kyushu region. The Kyuden group has an equity ownership of 2,858 MW in overseas electricity generation projects, and aims to achieve equity ownership of 5,000 MW by 2030.
• SIO is wholly owned by the Government of Bahrain and is responsible for providing social insurance to individuals in Bahrain.

Al Dur power and Water Company is a special purpose vehicle beneficially owned by the consortium, comprising ENGIE, Gulf Investment Corporation (GIC), Kyushu Electric Power Company (Kyuden) and the Social Insurance Organisation (SIO). The Al Dur IWPP is a flagship power project in Bahrain, accounting for significant portion of the country's power and water production, with capacity of 1,243MW in respect of power and 48 MIGD in respect of water per day.

The new 11-year US$1.20 billion refinancing involved a wide range of commercial lenders active in the European and Middle Eastern project finance markets, and allowed the Company 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 financing included over 15 regional and international lenders and hedge providers, via conventional and Islamic facilities.

Mohamed Hamra-Krouha, lead partner for Clifford Chance, commented: "We are delighted to have completed this important refinancing for the Company and the Sponsors. Our market-leading Project Finance team worked alongside ENGIE to ensure this project achieved its ambitious timeline".

The global Clifford Chance team was led by partner Mohamed Hamra-Krouha (Abu Dhabi) with assistance from partner Chirag Sanghrajka (Dubai), legal consultant Igor Bichenkov (Dubai), senior associate Greg Jehle (Abu Dhabi) and associates Marya Manna (Dubai) and Remo Mogodi (Abu Dhabi). The hedging workstream was led by partner Anne Drakeford (London) with assistance from senior associate Brij Patel (London), lawyer Kritika Vidyarthi (London) and trainee solicitor Adelina Maghet (London). The team was further supported by counsel Mike Niekoop (Amsterdam), associate Mariam Al-Zubaidy (Amsterdam) and associate Samuel Van Eijnatten (Amsterdam).