Iraq’s Qaiwan Group has secured two loans to help fund the development of its 442MW Bazian simple cycle power plant.
The $105m loan for the gas-fired power plant is being heralded as a sign of growing confidence of international investors in the Kurdistan region, where the plant is sited.
Qaiwan said the plant is nearing completion and could be expanded in the future to include a combined cycle phase that would bring the plant’s total capacity to 662 MW.
Meed reports that Deutsche Bank, the mandated lead arranger (MLA), structuring bank and facility agent has arranged an eight-year $75m buyer credit with the Dubai branch of Lebanon’s Bankmed, which is acting as co-MLA and co-lender.
The deal is backed by Compagnie Française d’Assurance pour le Commerce Extérieur (Coface), which manages public export guarantees on behalf of the French state, acting as France’s Export Credit Agency. US-based GE has arranged a five-year, $30 million commercial loan.
Commenting on the deal Saad Hasan, the CEO of Qaiwan Group, said “Completing these landmark agreements on competitive terms despite a challenging macro-economic and social backdrop in the region is emblematic of the fact that the investment community is encouraged by what they see in Qaiwan Group – and in Kurdistan,” he said.
In August 2014, Qaiwan Group signed a contract with Turkish EPC contractor Enka for the construction of the power plant on a site located 25 kilometres from Sulaymaniyah.
The latest loan refinances the purchase of turbines. Enka has a commercial contract with GE for the supply of four gas turbines.