$515 million syndicated finance facility signed

Bahrain National Gas Expansion Company S.P.C ("TAWSEAH" or the "Company"), which owns and operates one of the two associated gas processing facilities in Bahrain, has announced the successful signing of $ 515 million, 8-year syndicated financing facility. 
The facility was raised to finance part of the expansion of the Company’s gas processing facilities which include: (1) a central gas processing (CGP) train with a capacity of 350 million standard cubic feet per day (MMSCFD); and (2) pipeline and storage facilities at Sitra Wharf to cater for the enhanced capacity (the "Project"). 
GIB Capital acted as the sole financial advisor to the Company on the Project. 
A closing ceremony to commemorate this important milestone was held on April 10 which was attended by Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa, the Chairman of nogaholding, senior management of TAWSEAH, nogaholding, NOGA and participant banks.
The gas processing plants are of strategic importance to Bahrain’s economy and are an integral part of national energy infrastructure. The gas processing plants extract Natural Gas Liquids (NGLs) that are exported on one hand; and on the other hand, the residue dry gas supplements the natural gas supply to power plants and other major industrial end users. The new plant will also play an important role in supporting Tatweer’s Enhanced Oil Recovery (EOR) plans. 
JGC Corporation and JGC Gulf International were appointed as the engineering, procurement and construction contractors ("EPC") for the Project. The construction work of the Project is expected to be completed in 34 months from the signing date of the CGP III EPC with commissioning expected by Q4 2018. 
The syndicated financing facility was widely distributed throughout the GCC and attracted interest from local and regional banks. Participants include: Bank of Bahrain and Kuwait B.S.C., GIB B.S.C., Ahli United Bank B.S.C., Arab Bank Plc, Bahrain Islamic Bank B.S.C., National Bank of Bahrain B.S.C. and National Bank of Kuwait S.A.K.-Bahrain Branch. 
Commenting at the event, Shaikh Mohammed bin Khalifa Al-Khalifa, Minister of Oil said: "This TAWSEAH expansion is another significant milestone for Bahrain in the energy sector. The project is among the many other National Oil and Gas Authority (NOGA) and Oil & Gas Holding Company (nogaholding) strategic projects aimed at securing continued economic growth in the country. I would like to thank and congratulate all the Lenders for their valuable support in bringing this facility to a successful conclusion".
Commenting on the success of the Murabaha financing facility, Dr. Dafer Al Jalahma, Chairman of TAWSEAH and the acting CEO of nogaholding said: "We are incredibly proud of this significant milestone achievement. I would like thank to Shaikh Mohammed bin Khalifa Al Khalifa, Minister of Oil, for gracing us at this event and greatly appreciate his continued support and guidance. I would like to extend my sincere thanks to the lending banks for making this financing a great success. This reflects their trust in nogaholding’s track record and their confidence in investing in Bahrain and further fueling growth of the energy development projects in the country."

Source :BNA