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29 January 2020
BUSINESS

Kuwait’s Umm Al Hayman WWTP Company secures a $650 million loan facility

The loan will be used to finance the construction and operation of the Umm Al Hayman Waste Water Plant

Umm Al Hayman Waste Water Treatment Company is 40 per cent owned by the German/Kuwaiti Development consortium/iStock

by Kudakwashe Muzoriwa

Kuwait’s Umm Al Hayman Waste Water Plant (WWTP) Company has signed a $650 million, 26-year project financing agreement with a consortium of six banks led by the Commercial Bank of Kuwait, Al Ahli Bank of Kuwait and KfW IPEX-Bank as mandated lead arrangers and joint bookrunners.

Under the loan agreement, KfW IPEX- Bank will act as the global facility agent and offshore security agent while Al Ahli Bank of Kuwait will act as the onshore security agent and Commercial Bank of Kuwait as the onshore account bank.

Sheikh Ahmad Duaij Al Sabah, the Chairman of Commercial Bank of Kuwait, said, “The signing of the financing agreements reflects major developers’ continued confidence in the ability of Kuwaiti institutions to arrange financing for such complex project financing transactions.”

The Umm Al Hayman Waste Water Treatment Company is 40 per cent owned by the German/Kuwaiti Development consortium and 10 per cent by the Kuwait Investment Authority on behalf of the government.

The remaining 50 per cent is held by the Kuwait Authority for Partnership Projects (KAPP), with the aim of offering shares to the public through an IPO once the facility is operational.

The Umm Al Hayman WWTP project’s other mandated lead arrangers are the Korea Development Bank, DZ BANK and Siemens Bank.

Additionally, the project features a number of treatment plants, related facilities and transmission and distribution assets being constructed, operated and rehabilitated the Transmission and Sewage Treatment PPP Agreement.


RELATED STORIES: Umm Al Hayman Waste Water Plant Commercial Bank of Kuwait PPP Kuwait Authority for Partnership Projects Al Ahli Bank of Kuwait KfW IPEX-Bank Korea Development Bank Siemens Bank


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