Abu Dhabi power utility Shuweihat is raising $1.2 billion from a loan to refinance debt as it seeks to reduce costs and benefit from a drop in interes (more)
Abu Dhabi power utility Shuweihat is raising $1.2 billion from a loan to refinance debt as it seeks to reduce costs and benefit from a drop in interest rates, according to two bankers familiar with the plan.
The 17-year loan is being raised for the Shuweihat S2 power and water unit and pays 1.75 percentage points to 2.25 percentage points above the benchmark London interbank offered rate, the bankers said, asking not to be identified because the information is private. Citigroup Inc. (C), BNP Paribas SA (BNP), Standard Chartered Plc (STAN) and Bank of Tokyo-Mitsubishi UFJ Ltd. are helping Abu Dhabi Water & Electricity Authority, the Persian Gulf emirate's utility, raise the loan, they said.
Abu Dhabi National Energy (TAQA) Co., which holds a majority stake in Shuweihat, and its partners had obtained $2.7 billion in financing for the project in October 2009 at a margin of between 2.35 percent to 3.5 percent above the three-month Libor. They now seek to refinance that with the new loan and a planned bond sale this year, according to the bankers.
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