Leading UAE law firm Hadef & Partners is delighted to announce the receipt of two awards at the Project Finance Deals of the Year 2013 Awards on 5 March 2014:
• the Middle Eastern Bond Deal of the Year 2013 Award for Shuweihat 2 (Ruwais Power Company) bond issue and
• the Middle Eastern Oil & Gas Deal of the Year 2013 for Fujairah Oil Terminal.
The Shuweihat 2 bond project has received significant press commentary and attracted huge levels of international investor interest. It concerned the refinancing of a combined-cycle independent water and power plant located 250km south west of Abu Dhabi. The 144A-eligible issue raised $825m, which was used to refinance some of the $2bn in existing debt against the plant from 2009.
Alan Rodgers, Head of Banking & Finance at Hadef & Partners, said, “This was a ground breaking project as it was the first IWPP bond secured refinance undertaken in the UAE. It involved a number of lawyers from both of our offices working side by side with the client to deliver a time critical closing of the bond during the period of Ramadan.”
Hadef & Partners’ role in Fujairah Oil Terminal project was acting for Concord Energy and the project company on local law matters relating to a sale of equity to Sinomart KTS Development Limited and $251,860,000 limited recourse financing.
Valeria Lysenko, Partner in the firm’s Banking & Finance practice, who led the team, said, “We are delighted to have been able to facilitate the successful completion of this major multi-jurisdictional project financing by drawing upon our substantial expertise in the UAE federal and Fujairah local law and legal processes.”
The deal involved closing the terminal’s existing debt package and introducing new infrastructure of 1.155 million cubic metre oil storage facilities in Fujairah, the construction of which is expected to further strengthen the regional oil supply and security. The secured project financing was closed in February 2013 and was made up of roughly $252m of project debt provided by a syndicate of local and international banks.
Hadef & Partners are also very pleased to see White & Case LLP and Sullivan & Cromwell LLP take home the Middle Eastern Mining & Metals Deal of the Year Award 2013 for the EMAL 2 (Emirates Aluminium Phase II Project) deal in which Hadef & Partners have also played a significant role since 2007 acting as lenders’ local counsel, in both Phase I and Phase II of the EMAL Project.
The $4.5bn EMAL Phase II project financing deal involved an expansion to the EMAL site in Abu Dhabi. The expansion is anticipated to increase the annual production capacity of the EMAL smelter to some 1.3 million tonnes and the associated generation of electricity up to a maximum installed capacity of 3,023 megawatt with completion projected at the end of this year. It is expected to make EMAL one of the largest industrial projects in the UAE outside the oil and gas sector and, following completion of the integration of businesses of Dubai Aluminium and EMAL into Emirates Global Aluminium (EGA), make the EGA the fifth-largest global aluminium company by production. The complex EMAL Phase II financing has included $3.4bn debt from multinational commercial banks and Islamic finance providers, as well as $600m financing by four ECAs and completion guarantees. Valeria Lysenko has successfully run this project with assistance from a team of lawyers from both offices.
Alan Rodgers further commented “We are delighted to receive such recognition for our hard work on these deals. These complex projects have been ongoing for several years and the expertise and collaboration required to see them through to successful completion is an admirable achievement for all involved.”
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