Tuesday, July 16, 2019

Al Ezzel Power Company Celebrates Closing New Financing Facility

Al Ezzel Power Company, a key electricity supplier in Bahrain, celebrated today the closing of a $243 million new financing facility. This is a landmark achievement in the Bahrain infrastructure financing market, as the entire financing was extended by local and regional banks.

The new financing was provided by Arab Banking Corporation, National Bank of Kuwait, Mashreq Bank, National Bank of Bahrain and Ahli United Bank. All of these banks are present in Bahrain and have in-depth knowledge of the market.

The new financing replaces the original one provided in 2004 by a consortium of nine international banks and only two regional banks.

Al Ezzel power project was awarded in July 2004 by the Bahrain Ministry of Finance and National Economy, following an international competitive tendering process that attracted five bids and resulted in a record low tariff. The 950MW Project was contracted on a Build, Own, Operate basis, utilising gas-fired Combined Cycle Gas Turbine technology supplied and constructed by Siemens. The company started commercial operations in June 2007 and the inauguration was held under the auspices of Crown Prince Salman Bin Hamad Al Khalifa. Al Ezzel instantly proved itself as a key reliable electricity supplier to Bahrain and today accounts for about one quarter of Bahrain electricity needs.

The project was initially developed by Engie and Gulf Investment Corporation. The Social Insurance Organization of Bahrain joined soon thereafter. These three parties remain today as the shareholders of the Company.

The celebration was held with participation of representatives from the shareholders, financing banks and Bahrain and company officials.

“The success of this refinancing is a testimony to the confidence of the local and regional banks in the long-term credit worthiness of infrastructure projects in Bahrain. The new financing prepaid the balance of the loans provided in 2004 and extends the final maturity date to 2026,” said Shafic Ali, the Chairman of the Company.

“We are pleased by the response and strong support on this transaction of the Bahraini and regional banks which demonstrates the strength of this asset. We received a significantly higher liquidity appetite than expected allowing us to implement an optimum refinancing structure within a short timeframe. ,” said Cedric Girod, the regional Head of Acquisitions, Investments and Financial Advisory at Engie. “Al-Ezzel has performed at a high level of operational availability and efficiency and produced consistently solid financial results,” he added.

“We are very proud of the successful completion of this transaction and delighted with the collaboration with Al Ezzel’s executive team as well as its shareholders. The lending group is pleased with its continuous contribution and strong added value to finance the power sector in the Kingdom of Bahrain” said Saber Ayadi, the Group Head of Specialized Finance at Bank ABC, commenting on behalf of the lending group.

MOST READ

Huawei Launches The Mate 20 X 5G Smartphone In Bahrain

Marking the start of the 5G era, HUAWEI’S highly anticipated Mate 20 X 5G has finally arrived in Bahrain and is now available for...

Bahrain This Week For a Green Bahrain!

The 765.3 square kms island country, has recorded the hottest January and hottest June in Bahrain over a century in 2019. As the Summer...

Apply for Government Job Vacancies online

Looking for a job in the public sector? The Information & eGovernment Authority (iGA) brings you the opportunity to apply for government job vacancies...

Emarsys Partners Up With Gulf Air To Enhance Automated Communication

Gulf Air – the national carrier of the Kingdom of Bahrain – has recently started a strategic partnership with Emarsys - the largest independent...

Bahrain India Society Hosts BDB – The Entrepreneurs Bank

BDB, Bahrain Development Bank reveals the total amount of cumulative financing done by bank is BD 592 million since it commenced operations in 1992. Last...

Mohamed Al Hamer – Gulf Air Appoints Its Youngest Bahraini Country Manager

Gulf Air, the national carrier of the Kingdom of Bahrain, announces that it has appointed Mr. Mohamed Al Hamer as a country manager for...

Genesis Is Top Brand For Second Consecutive Year In J.D. Power 2019 U.S. Initial Quality Study

For the second year in a row, Genesis placed first in the J.D. Power 2019 U.S. Initial Quality Study (IQS) among all automotive brands....

Essential Oils and Their Benefits for Your Skin

Essential oils are a great way to improve the vitality and appearance of the skin. Many essential oils have natural properties that benefit skin...

Science Fests in the UAE go beyond Science to Immersive Learning

Schools Build “Classroom of The Future” with Immersive Learning Experience rooted in Science. The recent “Hope” to Mars has raised new hopes of transformation at...

Suryabhedana Pranayama

‘Surya’ means sun and ‘bhedana’ means piercing and in Yoga the right nostril is the Surya nadi so Suryabhedana pranayama the right nostril is...

Human Microchipping by Dr. Jassim Haji

Scientists have predicted that this is the year in which we will witness the beginning of human microchipping. This technology makes it possible, among...

Varicose Veins by Dr. Bashar A. Saleh

What are varicose veins? Varicose veins are twisted, enlarged veins near the surface of the skin. They are most common in the legs and ankles....

Farmers’ Market at Saar Mall

It is difficult for the Bahraini farmers to sell their products in this hot season. Inspired by the concept of Budaiya’s Farmer’s Market, the...

Brazil aims to develop tourism and economy through BRAVE CF

A delegation from the Brazil government travelled to Bahrain last week to help close a long-term deal with BRAVE Combat Federation for the Bahraini...

Identity Card Centers Open on Saturdays for Citizen Chip Updates

To accommodate an increase in demand, the Information & eGovernment Authority (iGA) announced that identity card centers at Isa Town and Muharraq (Seef Mall)...