Case study · Energy
Barka 3 / Sohar 2
Portland Advisers acted as financial advisor to GDF Suez (now Engie) on the US$1.35bn debt financings for two 750MW gas-fired CCGT IPPs at Barka and Sohar in the Sultanate of Oman.
Deal value
US$1.35bn
Portland's role
Financial Advisor to Sponsor GDF Suez (now Engie)
Year
2009
Transaction background
Two 750MW gas-fired combined cycle gas turbine IPPs at Barka and Sohar in the Sultanate of Oman. Portland Advisers acted as financial advisor to GDF Suez (now Engie).
Transaction structure
Project Financing — Two 750MW IPPs (Oman). Financial advisor to Sponsor GDF Suez.
Selected highlights
The Portland team advised throughout the project finance-raising process including:
- During the 4-month bid development period, the Portland team were based predominantly at GDF Suez’s Dubai office working closely with GDF Suez’s development team.
- Development of long-term project finance packages totalling $1.35bn.
- Preparation of an information package for financial institutions.
- Preparation and negotiation of detailed term sheets and commitment letters with lenders and export credit agencies involving sponsor and lender legal counsel.
- Preparation of sponsor’s financial models including tariff optimization.
- Review of project agreements and construction term sheet with EPC contractor (Siemens AG and GS Engineering & Construction Ltd).
- Ownership and tax structuring.
- Preparation of bid materials.
Total project debt of US$1.35bn. The financing was provided by Euler Hermes and Korea EXIM as well as a syndicate of 7 commercial banks acting as MLAs.