Al Dur Power & Water Company, one of the largest power generation and water desalination companies in Bahrain, has successfully closed a USD 1.2 billion refinancing facility with the help of a syndicate of 17 local, regional, and international banks. This refinancing includes both conventional and Islamic facilities totaling USD 643 million and USD 557 million respectively, with a range of commercial lenders active in Europe and the Middle East. This move allows the company to refinance its existing debt on favorable terms, reflecting the project’s status as a low-risk asset with a proven operational history.
The diverse group of lenders and hedge providers involved in this refinancing includes well-known institutions such as Abu Dhabi Commercial Bank, Arab Bank, and Standard Chartered Bank, among others. Al Dur Power & Water Company is jointly owned by ENGIE, Gulf Investment Corporation, Kyushu Electric Power Company, and the Social Insurance Organization. The company’s Al Dur IWPP is a key player in Bahrain’s power and water production sector, with a capacity of 1,234MW for power and 48 MIGD for water per day. The plant, which commenced commercial operations in early 2012, plays a crucial role in meeting the country’s power and water demands.
The successful closure of this refinancing facility underscores the confidence that the financial sector has in Al Dur Power & Water Company and its long-term prospects. The company’s strong track record of operational efficiency and reliability has positioned it as a key player in Bahrain’s energy landscape. The refinancing not only allows the company to reduce its debt burden but also provides it with the necessary financial flexibility to continue its operations and future growth plans.
The involvement of both conventional and Islamic financing options in this refinancing facility highlights the diverse range of financial instruments available in the market. This approach not only ensures that the company has access to a broad pool of funding sources but also reflects its commitment to aligning its financial strategies with Islamic principles. The partnership between the company and the syndicate of lenders demonstrates a shared commitment to sustainable and responsible financial practices.
The successful refinancing of Al Dur Power & Water Company’s debt is a testament to its strong operational performance and financial stability. By securing favorable terms for its refinancing facilities, the company can now focus on its core business activities and continue to deliver reliable and efficient power and water services to the people of Bahrain. The support of the syndicate of lenders further reinforces the company’s position as a leading player in the region’s energy sector, setting the stage for continued success and growth in the years to come.
In conclusion, the successful closure of a USD 1.2 billion refinancing facility by Al Dur Power & Water Company highlights the company’s strong financial standing and operational excellence. With the support of a syndicate of 17 local, regional, and international banks, the company has been able to secure favorable terms for its new financing facilities, allowing it to refinance its existing debt and strengthen its position in Bahrain’s energy sector. This move not only demonstrates the confidence of the financial sector in the company’s long-term prospects but also underscores its commitment to sustainable and responsible financial practices.
