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Overview

Bank of China contributes to AED 4 billion loan to Mirfa International Power & Water Company for refinancing purposes

Commitments (Constant USD, 2023)$114,431,623
Commitment Year•2022Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesOverseas Jurisdiction•United Arab EmiratesSector•Water Supply And SanitationFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 29, 2022
Last repayment (originally scheduled)
Sep 30, 2042

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Norinchukin Bank (Nochu Bank)
  • SBI Shinsei Bank, Limited
  • Sumitomo Mitsui Banking Corporation (SMBC)
  • Sumitomo Mitsui Trust Bank, Limited (SMTB)

State-owned Banks

  • Abu Dhabi Commercial Bank PJSC (ADCB)
  • First Abu Dhabi Bank PJSC (FAB)
  • KfW IPEX-Bank GmbH
  • Saudi National Bank (SNB) (SNB AlAhli) (Formerly The National Commercial Bank (NCB))

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Mirfa International Power and Water Company (MIPCO)

Collateral providers

Joint Venture/Special Purpose Vehicles

  • Mirfa International Power and Water Company (MIPCO)

Loan description

2022 syndicated AED 4 billion loan from BoC and others to Mirfa International Power & Water Company for refinancing purposes in the UAE

Interest type•UnknownMaturity•20 years

Narrative

Full Description

Project narrative

On July 29, 2022, Bank of China (BOC), through its Dubai branch office, contributed an estimated AED 444.44 million to an AED 4 billion senior secured loan facility to Mirfa International Power & Water Company (MIPCO) for the refinancing of a 2014 loan. The new loan had a maturity date of about 20 years and was scheduled to mature on September 30, 2042. Other details about the loan are currently unknown. Nine (9) institutions participated in the lending syndicate, all as mandated lead arrangers (MLAs). The institutions were Abu Dhabi Commercial Bank (ADCB), Bank of China (BOC), First Abu Dhabi Bank (FAB), KfW IPEX-Bank GMBH, Norinchukin Bank (Nochu Bank), Saudi National Bank (SNB), Shinsei Bank, Sumitomo Mitsui Banking Corporation (SMBC), and Sumitomo Mitsui Trust Bank (SMTB). MIPCO, 60% owned by the Emerati state-owned Abu Dhabi National Energy Company (TAQA), with the French ENGIE and Japanese Sojitz owning a 20% stake each, was a project company which owned and operated the Mirfa Power & Water Plant (Mirfa IWPP). The loan was secured by ENGIE, which won the Global MENA Awards 'Deal of the Year: Refinance– Power & Water– MENA’ on April 26, 2022 for its role. The Mirfa IWPP is a combined-cycle gas turbine power plant as well as a modular reverse osmosis plant containing three multi-stage flash desalination units with a gross installed power capacity of 1.7 gigawatts and 53 million imperial gallons per day in water desalination capacity.

Staff comments

1. For the time being, AidData is estimating Bank of China's (BOC) contribution (AED 444.44 million) to the lending syndicate by dividing the total amount of financing (AED 4 billion) by the number of lenders (9).