26 October 2004 LAWFUEL – Law, legal, attorney, bond issues, banking law newsAllen & Overy has advised National Bank of Abu Dhabi (NBAD) as lead arranger on the issue of US$133.75 million Loan Participation Notes by Abu Dhabi Power Bond Limited, a Jersey special purpose company.
This transaction is significant for two reasons: it is the first repackaging of loan finance by way of securitisation in the Middle East, in this case opening up a project financing to a new type of investor, and it is also the first time the loan participation note structure (whilst common in the Russian and Ukranian markets) has been used in the Middle East.
The Notes were issued to refinance part of NBAD’s participation in a commercial syndicated loan made to Emirates CMS Power Company in March 2004, which itself refinanced the original project financing put in place to construct the Al-Taweelah A2 independent power and water desalination project in the United Arab Emirates. The Notes are backed by the loan made to Emirates CMS Power Company and are split into three tranches which are due in 2008, 2011 and 2014, giving investors the opportunity to gain exposure to the project for a shorter period of time than is typical in the project finance market.
The Notes are listed on the Luxembourg Stock Exchange.
The Allen & Overy team was led by London based partner, Roger Wedderburn-Day and Dubai based partner Bimal Desai, with assistance from associates Luma Saqqaf and Mel Farrell. Allen & Overy partner Paul Monk advised The Bank of New York as trustee. Jersey law advice was provided by Carey Olsen.
Roger Wedderburn-Day commented:
“We are delighted to have advised National Bank of Abu Dhabi on this transaction, which is a first for the region. This was a particularly complex deal which took many months to structure. This transaction once again demonstrates Allen & Overy’s multi-jurisdictional capital markets expertise and leading position in the region in the capital markets field.”
For further information, please contact Caroline Livesey ([email protected]) in London on +44 (0) 20 7330 4380.