Global law firm White & Case LLP advised the lenders in the financing of a greenfield gas-fired independent power project in the Kingdom of Saudi Arabia, with a total net power capacity of 1730 MW.
The 20-year power purchase agreement between Dhuruma Electricity Company (as the project company) and Saudi Electricity Company was signed on 15 June 2010. The total project cost is estimated to be US$2.1 billion. The project sponsors are GDF Suez S.A., Aljomaih Holdings Company of Saudi Arabia, Sojitz Corporation of Japan and Saudi Electricity Company.
“We are seeing a considerable upswing in work in the Middle East and this transaction represents a significant power financing in the region and was completed within a three month period from the date of the award of preferred bidder,” commented Mark Castillo-Bernaus, White & Case LLP partner.
The financing includes US$1.55 billion in senior limited recourse project finance facilities, consisting of a mix of commercial bank loans, Islamic financing instruments and an export credit direct loan provided by the Export-Import Bank of the United States. In addition, equity bridge loans were provided on both a conventional and an Islamic financing basis.
The White & Case team was led by project finance partner Mark Castillo-Bernaus and senior associates Tom Bartlett and Kirsti Massie, working closely with fellow project finance partner Chris Utting. Assistance was provided by associates Ingrid York, Paul Simpson, Richard Blackburn, Laleh Shahabi, Anastacia Kharitonova and Sajjad Khoshroo, together with senior associate Carina Radford and associate Alex Malahias with respect to the equity bridge financing.
Milbank, Tweed, Hadley and McCloy LLP acted as legal advisors to the borrower.
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