Deals of the Year 2014: Middle East and Africa Winners

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Deal: Caracal Energy – reserve based financing

Caracal inks first syndicated bank financing

IMLABs: Societe Generale CIB, Natixis

Mandated Lead Arranger: ING Belgium

Participants: Galena Commodity Trade Finance Master Fund Limited, Federated Project and Trade Finance Core Fund

Borrower: Caracal Energy

Amount: $250 million

Tenor: 3 years

Lawyers: Bracewell & Giuliani (UK), White & Case

The facility was designed to finance development costs for two onshore oil fields - Mangara and Badila fields - located in Southern Chad. Caracal was expected to be the third largest producer after ExxonMobil and CNPC. Glencore Energy UK Ltd was acting as sole offtaker of the crude.

SG CIB acted as Initial MLA, bookrunner, underwriter, cotechnical bank, offshore account bank, modelling bank and documentation bank for an up to USD 250 million senior secured reserve-based facility in favour of Caracal Energy Inc. Soon after financial close of the facility, Caracal was bought by Glencore.

Caracal’s oil assets were of strategic and economic importance for Chad, which is highly dependent on income from crude oil sales. This transaction was the first syndicated bank financing for Caracal Energy and the first reserve based financing transaction in Chad. Caracal was the third largest acreage holder in Chad. This transaction sets a precedent and should lead to other reserve based transactions in the region.

Soon after financial close of the Facility, Caracal was bought by Glencore. Caracal was listed on the London Stock Exchange and headquartered in Calgary before it was bought by Glencore in July 2014.

According to the World Bank, 46.7% of Chad’s population lived below the poverty line in 2011. In 2012, 44.8% of Chad’s rural population was using piped water on premises, public taps, tube wells, protected springs and rainwater collection, according to the

World Bank. In 2005, this figure was 42.4%.


 

Deal: Egyptian Electricity Holding Company – ECA-backed financing

EEHC secures ECA financing amid turbulent environment

Lenders: HSBC Bank, Credit Agricole Corporate and Investment Bank, Deutsche Bank, Intesa Sanpaolo, Unicredit

Borrower: Egyptian Electricity Holding Company

Amount: Eur210 million

Tenor: 13 years

ECAs: Sace

Lawyers: Allen & Overy, Zaki Hashem & Partners

This is a strategically important infrastructure project, which will increase power generation in Egypt at a time when the economy is showing signs of recovery. The project involves the development, construction and commissioning of the 600 MW simple cycle power plant extension project in 6th October City in Giza governorate immediately to the west of Cairo. Ansaldo Energia will develop, construct and commission the entire plant consisting of four units of 150 MW each. This will double the power generation capacity of the existing 600 MW power plant on the immediately adjacent site.

The facility creates a precedent for future ECA supported financings which may be undertaken by EEHC. The transaction is strongly supported by the government of Egypt, as evidenced by a Ministry of Finance Guarantee.

Financing was developed following the Egyptian revolution in 2011 and throughout a period of political unrest and uncertainty in Egypt. This was therefore at a time when other forms of cross border medium/long term financing were not available. There was very limited appetite on the part of export credit agencies and there were few banks prepared to provide hard currency funding, even with high levels of ECA cover. This is a strategically important infrastructure project that will increase power generation in Egypt at a time when its recovering economy most needs it.

The European Bank for Reconstruction and Development (EBRD) recently opened its first resident office in Egypt to encourage development of projects in the country. The bank's activities in Egypt include promoting renewable energy and energy efficiency and increasing private-sector involvement in transport. The EBRD has invested over Eu600 million ($748 million) in 16 projects in Egypt to date.


Deal: IFC Ebola Emergency Liquidity Facility – trade and supply chain and working capital

IFC champions critical imports for Ebola-affected countries

Lender: International Finance Corporation

Borrower: Guaranty Trust Bank Liberia

Amount: $75 million

The $75 million initiative funds critical imports for Ebola-affected countries. It will support the import of basic goods, including energy, food and agricultural commodities, and other manufacturing goods.The facility has initially been made available to fund six existing International Finance Corporation (IFC) client banks, and may be extended to additional banks in future. As of December 31, three banks were approved to borrow under the facility.

The facility leverages two IFC existing programs – the Global Trade Finance Program (GTFP) to pre-screen eligible banks through its established due-diligence program and Working Capital Systemic Solutions (WCSS) – to quickly provide funding to banks in the affected countries. The facility comprises discrete funding facilities to each eligible bank. The tenor of WCSS facilities is typically up to 12 months, with an option to renew. Through the initiative, IFC will also offer increased limits and longer tenors to participating banks under its unfunded GTFP.

The working capital facility represents a significant portion of a $450 million commercial financing package unveiled by IFC in November 2014 that will enable trade, investment, and employment in Guinea, Liberia and Sierra Leone. The private sector initiative will include $250 million in rapid response projects, and at least $200 million in investment projects planned to support post-epidemic economic recovery. The IFC initiative is part of the World Bank Group’s broad effort to mobilise $1 billion to invest and provide support during the Ebola epidemic and prepare for economic recovery in the countries most affected by the crisis.

A direct result of the Ebola epidemic has been a severe disruption in trade and supply chains and a precipitous decline in foreign currency earnings. In Guinea, Liberia and Sierra Leone, foreign companies, especially in the mining sector and international organisations were by far the largest providers of foreign exchange liquidity. Many of these companies have slowed down or suspended operations in the affected countries due to a combination of local and global disruptions, including low commodity prices, labour constraints and slowdown in trade. In these three import-dependent countries, local banks play a critical role in providing trade finance facilities and foreign currency to pay for petroleum products, food, and other manufactured products.


Deal: IPG Ethiopia – Structured Commodity Finance

IPG champions Ethiopian petroleum imports

MLAB: Natixis

Other lenders: International Finance Corporation, Standard Bank of South Africa

Borrower: Independent Petroleum Group Ltd. (Bahamas)

Amount: $450 million

Tenor: 1 Year

The deal is a $450 million short-term syndicated trade facility arranged by Natixis to finance 53% of Ethiopia’s imports of petroleum products in 2014. The borrower is a subsidiary of IPG Group, and a client of Natixis with what the bank describes as seven years of proven track record. Natixis, the lead lender and facility agent for all lenders on the deal, is financing $150 million on its own account. IFC and Standard Bank of South Africa are also participating with $150 million each.

Ethiopia receives all of its petroleum through imports which it then uses for transportation, industrial and household purposes.

Ethiopia is a landlocked country, with poor railway infrastructure and heavy reliance on ground transportation for movement of critical goods and services (such as distribution of refined oil throughout the country and export of agricultural commodities which represent 85% of Ethiopia’s total exports).

The project is expected to finance a total volume of energy imports of up to $1 billion to Ethiopia on an annual basis.

Imports of petroleum products such as gasoline are therefore crucial for the transportation infrastructure and for Ethiopia’s economy. Petroleum products are also essential for the functioning of key sectors, such as construction, agriculture, manufacturing and mining. Meantime, access to energy is among the key elements for the economic and social development of Ethiopia.

The transaction will eliminate uncertainty in the supply of petroleum products, fix the cost structure of these products for the term of the transaction, and therefore allow the government and economic agents to plan and conduct their activities with confidence.



Deal: Kenya Airways – ECA-backed aircraft financing

Kenya Airways receives first Dreamliner

Arrangers: JP Morgan, Citibank, Afreximbank

Borrower: Kenya Airways

Amount: $842 million

Tenor: 12.75 years

ECAs: US Ex-Im, Afreximbank

Lawyers: Milbank, Clifford Chance, Hogan Lovells, Zuckert Scoutt and Rasenberger, Vedder Price

Exporters: Boeing, GE

Kenya Airways, known as KQ, leveraged the long-term U.S. Ex-Im Bank financing programme to obtain support for its purchase of six Boeing 787-8 aircraft, one Boeing 777-300ER aircraft, and one GE spare engine. On March 31, 2014, KQ took delivery of the first 787-8 aircraft.This wide-body aircraft now services KQ’s Nairobi to Paris route, expanding its footprint into Europe, providing greater fuel efficiency and improving the flying experience for passengers. The 787-8 aircraft uses 20% less fuel than other aircraft of similar size while offering more passenger-pleasing features such as noise reduction, larger cabin windows, increased humidity and improved cabin pressure.

This transaction was arranged and financed by three banks: J.P. Morgan, Citibank, and Afreximbank. J.P. Morgan and Citibank co-arranged and co-funded 85% of the contract amount (the senior portion guaranteed by U.S. Ex-Im Bank). The remaining 15% of the contract amount was financed by Afreximbank, whose objective is to finance and support intercontinental trade with Africa. The coordination and collaboration of this complex transaction among all parties represents a strong commitment to Kenya Airways and the growth of the African economy. This comprehensive financing represents one of the largest financings to date in Kenya.

The fleet modernisation comes at a critical time for Kenya Airways, which is facing unprecedented external challenges brought on by terrorist attacks, the JKIA terminal fire and spread of Ebola in other parts of Africa. This transaction will likely be the largest U.S. Ex-Im Bank aviation transaction executed this year and will support its Sub-Saharan initiative.

In May 2012, Kenya Airways mandated Afreximbank to arrange the financing for the 10 Embraer-190 and 10 Boeing aircraft under a package consisting of pre-delivery payments facilities to fund advance payments to aircraft manufacturers Boeing and Embraer, and aircraft delivery facilities to fund the deliveries.



Deal: Kosmos Energy – revolving facility

Array of banks on Kosmos Energy deal

Participants: SG CIB, HSBC, Standard Chartered, BNPP, Standard Bank, CA CIB, Natixis, ABSA, IFC, BoA, NedCap, SMBC, ING, FBN, DNB, BTMU, Citibank, Credit Suisse, Barclays Bank of Ghana, Investec Asset Management Proprietary

Borrower: Kosmos Energy

Amount: $1.5 billion

Tenor: 7 years

Lawyers: Clifford Chance, Slaughter & May

This facility is a bespoke structured financing designed to give value to Kosmos’ further developments. At the time of closing, the transaction structure is thought to have been only the second of its kind.

Kosmos is an independent NYSE listed oil and gas exploration and production company focussed on frontier and emerging areas in the Atlantic Margin.

Overall, this facility was structured to accommodate the company’s future growth and will be mainly used to refinance the existing facility and fund Kosmos’ share in the optimisation of production at the Jubilee field and the development of Tweneboa, Enyenra and Ntomme (Ten) fields in Ghana.

This facility is sized using a combination of traditional debt sizing metrics (cash-flow projections, NPV and ratios) as well as a dollar/barrel component.

Participants on the deal included ING, FBN, DNB, BTMU, Citibank and Credit Suisse.

Lawyers on the deal are Clifford Chance who are acting for the lenders; Slaughter & May are acting for the sponsor.

Kosmos Energy was formed in 2002 and has approximately 250 employees. Since 2007, the company has discovered eight commercial fields in Ghana.

According to the UN, in 2013, Ghana’s value of merchandise exports decreased by 17% to $15.5 billion. Meanwhile, merchandise imports decreased by 28.5% to reach $10 billion. Gold was Ghana’s top export commodity between 2011 and 2013.

Late last year, the Ghanaian Minster for Finance announced plans to launch an export-import bank. The state-run bank’s mission will be to increase sales of domestic products abroad. Half of Ghana’s Export Development and Agricultural Investment Fund monies will be used to set up the export-import bank.



Deal: Oman refineries – ECA-backed project finance

Banks and ECAs on hybrid Oman deal

Lenders: Bank Muscat, National Bank of Oman, Al Ahli Bank, Bank Dhofar, Bank Sohar and the Oman Arab Bank, HSBC, SMBC, KfW IPEX-Bank, Abu Dhabi Commercial Bank, Qatar National Bank, Saudi National Commercial Bank, National Bank of Abu Dhabi, Standard Chartered, Arab Banking Corporation, Arab Petroleum Investment Corporation, Ahli United Bank and Arab Bank

Borrower: Oman Oil Refineries and Petroleum Industries Company; Oman Oil Company SAOC

Amount: $1.812 billion

Tenor: 12.5 years

ECAs: Sace, the Export-Import Bank of Korea and Korea Trade and Insurance Corporation

Lawyers: Allen and Overy

The Oman Refineries and Petroleum Company (Orpic) signed a loan agreement with a team of 21 banks and ECAs. Banks on the deal include Bank Muscat, National Bank of Oman, Al Ahli Bank, Bank Dhofar, Bank Sohar and the Oman Arab Bank. International lenders include HSBC, SMBC, KfW IPEX-Bank, Abu Dhabi Commercial Bank, Qatar National Bank, Saudi National Commercial Bank, National Bank of Abu Dhabi, Standard Chartered, Arab Banking Corporation, Arab Petroleum Investment Corporation, Ahli United Bank and Arab Bank.

In addition to Sace, the Export- Import Bank of Korea and Korea Trade and Insurance Corporation round out the ECA portion of the deal.

The Sohar plant supplies refined gasoline, diesel, fuel oil, liquefied petroleum gas and other hydrocarbons. Once the expansion is complete, the refinery’s production capacity will be enhanced by 70% from 116,000 barrels of per day to 198,000.

Output from the plant is predominantly distributed among Oman's domestic market, while produced propylene and naptha will be distributed to two petrochemical plants controlled by ORPIC.

HSBC has issued the $100 million loan, which is part of a procurement contract with Italian enterprises that will supply equipment and machinery for the Sohar refinery.

This transaction, with its significant size, is a landmark deal in the region, while its hybrid structure is also innovative.

The project involves the improvement of Sohar Refinery, optimising production at existing plant and increasing capacity from 116,000bpd to 198,000 bpd.

Earlier this year, Oman-based Bank Muscat led a delegation to Malta to explore investment and trade opportunities between Oman and Malta.


Deal: Petroleum Export Limited VI – Commodity financing

Lenders back crucial Egyptian oil deal

IMLAs: National Bank of Abu Dhabi, National Bank of Egypt, HSBC Bank Middle East

MLAs: AAIB, Arab Bank Bahrain, Arab Bank Egypt, CIB Egypt, HSBC Egypt, Mashreq, Natixis, BTMU, Union National Bank

Borrower: Petroleum Export Limited VI, an orphan special purpose vehicle incorporated in the Cayman Islands.

Amount: $1.323 billion

Tenor: 42 months

Lawyers: Latham & Watkins; Matouk Bassiouny; Skadden, Arps, Slate, Meagher & Flom; Helmy & Hamza; Maples & Calder

Exporter: Egyptian General Petroleum Corporation

Other advisors: Wood Mackenzie

The $1.32 billion Egyptian General Petroleum Corporation (EGPC) pre-export finance facility signed by the Egyptian General Petroleum Corporation was the first substantial international fund raising by EGPC and Egypt after the Arab Spring.

The loan has a final maturity of 42 months and an average life of 2.37 years. The transaction was of great importance to EGPC and to Egypt as a whole, due to recent challenges in the Egyptian economy, and specifically as proceeds from the financing would be used to settle delayed payments to oil companies. The transaction was set against the backdrop of falling oil prices, while limitations at EGPC would mean that hedging of oil would be uneconomic and therefore not feasible.

The deal was concluded in an exceptionally short timeframe. The consortium was officially mandated on December 2 following an extensive beauty contest and with the condition of getting the facility disbursed before year end, in order to meet the client's needs.

The consortium conducted a successful senior syndication, selling-down $900 million, and funded the transaction within a period of only 20 days, enabling EGPC to settle its outstanding dues with a group of international oil companies before year end.

The facility was successfully signed on December 23 and disbursed on December 29.

The first round of syndication was successful, demonstrating the robustness of the structure and acceptability of the deal by a wide local, regional and international investor base.

The deal paves the way for Egypt for future fund raising and demonstrates return of confidence in the country.



Deal: Reserve Bank of Zimbabwe – Export finance

Afreximbank issues novel instrument

Participants: Afreximbank, Standard Chartered Bank Zimbabwe, Barclays Bank Zimbabwe, Standard Bank Investment Corporation Bank Zimbabwe, FBC Bank

Borrower: The Reserve Bank of Zimbabwe

Amount: $200 million

Tenor: 2 years

ECAs: Afreximbank

Lawyers: Hogan Lovells, Dube, Manikai & Hwacha

Aftrades is a novel product that has helped create self-sustaining solutions to liquidity problems and lack of credible security, by making use of local financial resources and capacity. The facility has helped restore Zimbabwe’s inter-bank market, as well as the lender of last resort role of the central bank.

The Reserve Bank of Zimbabwe (RBZ) approached Afreximbank to structure a support facility to assist the banking sector in unlocking deposits held by banks with surplus liquidity not utilized for lending purposes, stimulating the interbank market.

Enhancement of liquidity required for trade related transactions from the surplus banks to deficit banks has had a multiplier effect on the economy. Local banks with excess liquidity are comfortable participating in the interbank market with comfort that their risk is appropriately mitigated. The facility heralds stability of the Zimbabwe’s Banking sector, which is key to recovery of its economy.

Afreximbank’s role in this transaction was to issue a bearer debt instrument (Aftrades) against partial cash collateral and assignment of eligible assets to be taken by RBZ. The structure of the facility envisaged that the RBZ grants the Aftrades securities liquid assets status and prescribed assets status in Zimbabwe. The issue amount is $200 million at 100% issuance price with a two year maturity.

The government of Zimbabwe, through the Ministry of Finance and Economic Development, is serving as guarantor and liquidity support contributor for Aftrades, with the Reserve Bank of Zimbabwe granting the regulatory approvals for participating banks, as well as other support needed to implement and administer the facility.



Deal: SAFI IPP Project – ECA-backed project financing

Morocco completes largest energy transaction

MLAs: Societe Generale, BNP Paribas, CACIB, Standard Chartered, Attijariwafa Bank, Banque Centrale Populaire, Bank of Tokyo – Mitsubishi UFJ, Mizuho Bank, SMBC, Sumitomo Mitsui Trust Bank

Participants: JBIC, Islamic Development Bank

Borrower: Safi Energy Company

Amount: $2.162 billion

Tenor: 18 years

ECAs: JBIC, NEXI

Lawyers: Clifford Chance, Linklaters

Other advisors: Mott Macdonald, JLT Specialty Ltd, BDO

Safi Energy Company signed project finance agreements for a coal-fired power project in southwest Morocco aimed at meeting higher energy demand at low cost.

Project financing is for the construction of a greenfield 1,390MW ultra-critical coal-fired power plant located near the town of Safi,

250 km south of Casablanca, Morocco.

The $2.6 billion Safi coal-fired power plant project is the largest energy transaction ever completed in Morocco. It is the first ultra-supercritical coal-fired power plant in Africa guaranteeing an efficiency in the top end of the range for this kind of facility. Once completed, it will provide an efficient and economic response to Morocco’s pressing need for power, responding to approximately 25% of the country’s electricity needs.

The power plant, consisting of two 693 MW units, will be the first to use ultra-supercritical technology in Africa, said to perform at 10% higher efficiency than conventional plants. The project is part of Morocco's national strategic plan to meet its growing electricity demand at the lowest possible cost, while protecting the environment.

A complex, multi-source, multi-currency financing plan gathered international lenders as well as local banks and export credit agencies (with the major involvement of JBIC and NEXI) supporting an 18-year tenor door-to-door. JBIC is providing a $718 million loan and a Eu 147 million ($187 million) loan. Pricing is 210 basis points over dollar Libor for the JBIC dollar loan. NEXI are also involved in the public private partnership (PPP), which is covering the commercial tranches priced at 150bp over dollar Libor. Project sponsors for the deal are GDF Suez (France), Electrabel (Belgium), Mitsui & Co (Japan) and Nareva Holdings (Morocco).



Deal: Societe des Hydrocarbures du Tchad – Commodity financing

PXF arranged for Chad oil acquisitions

Arrangers: Deutsche Bank, Natixis and Credit Agricole, Glencore

Borrower: Glencore

Amount: $1.31 billion

Tenor: 4 years

Exporter: Societe des Hydrocarbures du Tchad

Glencore, the commodities trader, has arranged a pre-export financing (PXF) deal backed by crude oil enabling Chad's stateowned oil company, the Societe des Hydrocarbures du Tchad (SHT), to purchase $1.3 billion in Chevron assets and a stake in oilfields operated by ExxonMobil.

Glencore has arranged the four-year PXF with Deutsche Bank, Natixis and Credit Agricole, alongside regional development banks.

SHT will use the loan to purchase a 25% stake in seven oilfields in Chad's Doba Basin, currently operated by ExxonMobil. The sale also includes a 21% stake in a 1,070km pipeline that links the country's oilfields with an export terminal in the Atlantic, which runs through Cameroon.

ExxonMobil will maintain a 40% share in the oilfields, while Petronas of Malaysia holds a 35% interest.

The loan is equal to roughly 10% of Chad’s annual gross domestic product, estimated at just above $11bn in 2012. This is SHT’s second successful Crude oil prepayment financing syndication. The purchase has transformed SHT, significantly increasing its production.

The facility is structured as a self-liquidating, four year crude oil prepayment finance benefiting from offshore collection of export proceeds, over-collateralisation, top-up mechanics, escrow account cash flow monitoring, assignment of Glencore’s rights and benefits under the prepayment agreement, and a sovereign guarantee.

The Chadian government relies on the export of oil with crude oil exports comprising 90% of all goods exported by the country and 74% of its revenues as of 2013.

Glencore first entered Chad's oil market when it paid approximately $300 million for a stake in various oilfields in 2012. In April this year it bought oil company Caracal Energy for $1.35 billion.



Deal: Société Nationale des Pétroles du Congo – Commodity financing

SNPC financing gets nod from African banks

Co-MLAs: Attijariwafa Bank and BGFI Bank consortium, Ecobank Nigeria Ltd, Qatar National Bank SAQ and United Bank for Africa Plc

Participating lenders: BGFI Bank Group, Attijariwafa Bank Group, UBA Group, QNB Group, the Development Bank of South Africa, the Banque de Développement des Etats de l’Afrique Centrale, Rawbank Group and the Ecobank Group

Borrower: Société Nationale des Pétroles du Congo

Amount: $1.5 billion

Tenor: 5 years

Mandated lead arrangers were appointed by the Republic of Congo’s state-owned oil company Société Nationale des Pétroles du Congo (SNPC), to raise up to $1.5 billion to finance its 2014-2016 capital expenditure programme.

A five-year term facility of $914 million was successfully raised from a syndicate of banks, composed mainly of African financial institutions, for the first closing, which took place in October 2014.

This innovative structure, combining corporate finance and reserve-based lending schemes, provided lenders an efficient coverage mechanism, backed by the assignment of SNPC’s entire oil production in the RoC, estimated at 9 million barrels in 2013, as well as the company’s downstream and midstream revenues.

Notwithstanding the support provided to the Congolese economy, the transaction confirmed the increased appetite and willingness of African banks to leverage their resources and technical capabilities to deepen Africa’s strategic and economic development.

As well as encouraging deep water exploration and development activities, this transaction will reverse the RoC’s recent decline in oil production as output from the Financed Assets will increase SNPC’s current production levels of circa 25,000 barrels per day to up to 36,500 barrels per day by 2017.

Founded in 1998, SNPC is the largest company in Central Africa, with 2013 revenues of circa $2.0 billion. SNPC intervenes on behalf of the State of Congo and on its own account in the various stages of hydrocarbon processing chain, both abroad and within the RoC. The company accounts for a minimum of 70% of the State budget and oversees the production and marketing of circa 35 million barrels of crude oil per year.  



Deal: Wa’ad Al-Shamal – ECA-backed project finance

Banks and ECAs finance Saudi phosphate project

Lenders: Al Rajhi Bank, Alinma Bank, Apicorp, Banque Saudi Fransi, BNP Paribas, Islamic Development Bank, Riyad Bank, Samba Financial Group, SMBC, the National Commercial Bank, the Saudi British Bank, the Saudi Investment Bank, Kexim, HSBC, KfW IPEX-Bank, Mizuho, SMBC, BTMU, EDC.

Borrower: Ma’aden Wa’ad Al-Shamal Phosphate Company

Amount: $5 billion

Tenor: 17 years

ECAs: Kexim, K-sure, EDC

Lawyers: Baker McKenzie, Allen and Overy

One of very few phosphate transactions, the deal combines multiple project sites and EPC contracts. The financing package comprises the involvement of several ECAs and local, Islamic and international tranches.

Development of the Wa’ad Al-Shamal greenfield phosphate mine and petrochemical project includes integrated phosphate mining and fertilizer facilities to be located in Umm Wu’al region and Ras Al-Khair.

An affiliate of Saudi Arabian Mining Company Ma’aden, Ma’aden Wa'ad Al-Shamal Phosphate Company (MWSPC) signed a SR18.9 billion ($5 billion) project financing with a consortium of 20 financial institutions.

MWSPC will use the funds to develop its phosphate project in Saudi Arabia, comprising the Umm Wual development project, located in Waad Al-Shimal City in the north of the country, along with a related infrastructure project at Ras Al-Khair Industrial City on the country's eastern coast.

Korean export credit agency Kexim has provided a SR2.3 billion loan towards the project. Additionally, Kexim and compatriot ECA K-sure have supplied loan insurance and guarantees facilities worth SR2.3 billion on loans provided by HSBC, KfW IPEX Bank, Mizuho, SMBC and BTMU.

The project financing also includes SR7 billion of facilities provided by Canadian ECA EDC, Al Rajhi Bank, Alinma Bank, Apicorp, Banque Saudi Fransi, BNP Paribas, Islamic Development Bank, Riyad Bank, Samba Financial Group, SMBC, the National Commercial Bank, the Saudi British Bank and the Saudi Investment Bank, alongside a SR7.5 billion facility from Saudi Arabia’s Public Investment Fund. Ma’aden, Mosaic and SABIC own 60%, 25% and 15% of the project respectively.

Related analytics

Transaction Name Stage Est. Value
Sonacos/$75 million/1116 Financial close 75.00
EGPC/$200 million/0806 Financial close 200.00
Cocobod/$810 million/0906 Financial close 810.00
Bahrain LNG/$655 million/0916 Financing 655.00
Gulf Drilling International/$130 million/0606 Financial close 130.00
No data available
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