The partial refinancing of JBIC and commercial banks as existing creditors to the US$2.3 billion Shuweihat S2 independent water and power project closed on 6 August 2013. Ruwais Power Company PJSC (sponsored indirectly by TAQA, GDF Suez, Marubeni, Osaka Gas and ADWEA) issued US$825 million in project bonds (with a 6% yield) and applied such proceeds towards the refinancing (among other purposes).
Milbank acted as international counsel to JBIC, the commercial banks and the facility agents and security trustees, having previously acted as lenders’ counsel on the original financing of the project which closed in October 2009. White & Case advised the Company and Latham & Watkins advised the initial purchasers of the bonds.
John Dewar, partner in Milbank’s Project Finance Group, commented: “This is a precedent setting refinancing in the Middle East power market which many industry observers believe may lead to a number of future project bond refinancings in this asset class.”
The Milbank deal team was led by London based partner John Dewar and senior associate Pablo Malay.
Milbank regularly advises on bond issuances. The London team recently advised the Joint Lead Managers in connection with a US$2 billion Sharia’h compliant project bond issued for the Sadara Chemical Company’s integrated petrochemicals project in Saudi Arabia as part of its US$12.5 billion debt raising.
