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Dolphin Energy has announced that 25 banks will provide conventional and Islamic project finance totalling US$3.45bn (Dh12.7bn) including refinancing of its earlier facility.


Banks responded overwhelmingly to provide up to US$4bn (Dh14.7bn) but Dolphin will accept only US$3.45bn that comprises US$2.45bn conventional facility and US$1bn Islamic financing to cover the construction costs of the project.


“The financial markets for both Islamic financing and the conventional lending have made a strong statement about the confidence they have in Dolphin Energy and the vision for regional energy integration behind it,” says Ahmad Ali Al Sayegh, Dolphin Energy’s chief executive.


“We are especially proud to offer Islamic institutions a US$1bn facility opportunity, the largest ever Islamically structured oil and gas financing. We are particularly pleased that our lead banks are making a special point to invite Islamic investors from across the Middle East and Asia to join the financing.”


Last year

  • DEL signed a US$1.36bn loan agreement with a consortium of 16 local, regional and international banks.


    “The new financing will refinance the existing US$1.36bn facility as most of the banks are the same who were part of the earlier deal,” says a Dolphin spokesman.


    There is an overall pricing equivalence between the Islamic and conventional facilities. The yearly margin above Libor on each facility is 0.35% for the first two years and 0.45% for the next two years.


    “The attractive pricing on our facilities demonstrates just how much confidence the market places in our capabilities, our vision, and the strength of our shareholders, Mubadala Development Company, Total and Occidental Petroleum,” says Al Sayegh.


    The mandated lead arrangers (MLAs) for the conventional facility are National Bank of Abu Dhabi (facility agent), Abu Dhabi Commercial Bank (documentation bank), Barclays Capital (co-documentation bank), First Gulf Bank (onshore security trustee), HSBC (offshore security trustee), Bank of Tokyo-Mitsubishi, Bayerische Landesbank, Calyon, Export Development Canada, Royal Bank of Scotland, Societe General, Sumitomo-Mitsui Banking, Qatar National Bank, Wesdeutsche Landesbank, ABC Banking, Arab Bank, BNP Paribas, Lloyd’s TSB and Standard Chartered Bank.


    The Islamic MLAs are ABN Amro (security trustee), BNP Paribas (documentation bank), Citibank (bookrunner), Dubai Islamic (bookrunner) and Gulf International Bank (facility agent).