| 08 Jun 2009 |
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Dolphin Energy's Dh12.6bn debt refinancing close to finalisation
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The refinancing of Dolphin EnergyDolphin Energy
's $3.45 billion (Dh12.6bn) loan that matures in July is now in its "final documentation" stage, a source close to the deal told Emirates Business.Greg Fewer, Assistant Director and Advisor, Project & Corporate Finance Unit at Mubadala which owns 51 per cent of DolphinDolphin
said the commitments are all in and Dolphin EnergyDolphin Energy, an Abu Dhabi based-energy company, is currently ironing out the final details.Fewer, who declined to give specific details, said the company is "not worried" about re-financing the debt, which was financed in 2005 through a $2.45bn conventional facility and a $1bn Islamic loan.
"The DolphinDolphin
refinancing is a non-recourse project. There's no drop date, no exact deadline, but we are not worried... we have bridge loans in place with our banks," Fewer said."The commitments are in. It is different banks [involved now]. We are very happy on the uptake on that," he added.
He said the company is also exploring an Islamic finance tranche, but there is still no decision reached.
Earlier, news reports stated the new loan, for which Royal Bank of ScotlandRoyal Bank of Scotland
is advising, will include a $1.6bn commercial tranche and a $500 million Islamic facility, while there will also be a bond issue worth about $500m. Analysts say Islamic institutions, which have long been sought to participate in project financing, are not yet ready to cater to long-term financing."Islamic finance has begun to undertake large deals, however, it is too early to embark on mega project finance deals," Tarek Bachnak, Assistant Director, Calyon's Islamic Banking Team, said.
Dolphin EnergyDolphin Energy
, a pipeline project linking Qatar's giant North Field with the UAE and Oman was the first cross-border gas project in the Gulf Arab region. Last month, Chief Executive Officer Ahmed Al Sayegh said the government-controlled venture is "technically ready" to upgrade its pipeline facilities to ship at the full capacity of 3.2 billion cubic feet daily. Increasing supply however is subject to Qatar making more fuel available.Currently, it transports about two billion cubic feet of Qatari gas a day to the UAE and Oman.
By Karen Remo-Listana
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