nuclear-news

United Arab Emirates raising loans for $30 billion nuclear power plant program

UAE Nuclear Power Corp. to raise $2 bln in loans http://www.dailystar.com.lb/Business/Middle-East/2012/Nov-20/195569-uae-nuclear-power-corp-to-raise-$2-bln-in-loans.ashx#axzz2CsdUajHi November 20, 2012 Emirates Nuclear Energy Corp., which is building the Gulf Arab region’s first nuclear power plant in Abu Dhabi, is raising $2 billion from bank loans to finance construction, according to two bankers familiar with the plan.

The 20-year facility being raised by the government-owned company pays interest of 175 basis points, or 1.75 percentage points, above the London interbank offered rate, according to the bankers, who asked not to be identified because the information is private. The interest rate will rise over the loan’s life to 260 basis points above the benchmark, the bankers said. The signing of the agreement is imminent,
they said.

HSBC Holdings Plc and Credit Suisse Group AG are advising Emirates
Nuclear Energy on the fundraising, according to the bankers. Standard
Chartered Plc, National Bank of Abu Dhabi PJSC, First Gulf Bank PJSC
and Union National Bank PJSC may also to lend to Emirates Nuclear
Energy, they said.

A spokeswoman for Emirates Nuclear Energy didn’t respond to a phone
call or an email seeking comment. Sofia Rehman, spokeswoman for Credit
Suisse in London, and a spokesman for HSBC in Dubai declined to
comment. Spokesmen for Standard Chartered, National Bank of Abu Dhabi,
First Gulf Bank and Union National Bank also declined to comment.
Emirates Nuclear Energy began construction of the plant in July at
Barakah in Abu Dhabi’s Western Region and will complete the first of
the four 1,400 megawatt facilities in 2017. Each one of the additional
units will become operational every year through 2020. The nuclear
program will cost about $30 billion, two people with knowledge of the
project who asked not to be identified said in November last year.

Emirates National Energy plans to raise another $2 billion from export
credit agencies and the remainder from loans and equity from Abu
Dhabi’s government and the project’s joint venture partner Korea
Electric Power Corp.

The United Arab Emirates, of which Abu Dhabi is the biggest and the
richest state, is seeking to become the first Gulf Arab nation to
develop nuclear power. Korea Electric Power was awarded.

November 21, 2012 - Posted by Christina Macpherson | business and costs, United Arab Emirates