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Wednesday, April 13, 2016
Deutsche Bank, HSBC and KfW IPEX-Bank have jointly structured and arranged the Hermes-underwritten financing for the Beni Suef, Burullus, and New Capital COGAS plants in Egypt. A consortium of 17 international banks is raising the debt capital of €3.5 billion.
The total investment cost for the three power plants will run to €6 billion.
Together, Deutsche Bank, HSBC and KfW IPEX-Bank are acting as Coordinating Initial Mandated Lead Arrangers (CIMLAs) for the financing. The banks have been mandated for the project by the state-owned Egyptian Electricity Holding Company (EEHC). The CIMLAs are also acting as co-bookrunners for the syndication of the Hermes-covered finance with Deutsche Bank acting as coordinating bookrunner. KfW IPEX-Bank assumes an additional role as Hermes Agent and Facility Agent. The coordinating bank for environmental and social project due diligence for the Beni Suef and Burullus power plants is Deutsche Bank. HSBC is acting as environmental coordinator for New Capital.
The loans are guaranteed by the Egyptian Finance Ministry.
The core component of each of the natural gas-fired combined cycle power plants, which are to be built at three different locations across the country, will be eight latest-generation Siemens gas turbines. The H-Class, as it is known, is a maximum efficiency turbine, thus providing not only a reliable energy supply but also a greener one.
The three large power plants, all of the same design, will each have a 4,800 MW production capacity, with a combined capacity of 14.4 GW. Upon completion in 2018 they will be the largest in the world. The projects will boost Egypt’s electricity production by 50% and make a significant contribution to the country’s national economic development.
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