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PP11: Back for SEC-onds

29 July 2010

The $2.1 billion financing of the PP11 gas-fired independent power project in Saudi Arabia is the first time international banks have taken on uncovered risk on a project since the country’s Ministry of Finance stopped providing a direct guarantee to offtaker Saudi Electricity Company (SEC). The deal is also notable for its speed of execution: the GDF SUEZ-led team was appointed preferred bidder in mid-March, and close was reached within three months. PP11 is the quickest closing of any project financing involving US Ex-Im.

“The deal is also significant because it shows that non-Japanese bidders can get deals financed competitively.” Karel Breda, head of acquisitions, investments and financial advisory for Middle East and North Africa at the project’s lead sponsor, GDF SUEZ.

Sponsored by SEC (50%) and a consortium of GDF SUEZ (20%), Al Jomaih Group (15%) and Sojitz (15%) total project costs are $2.1 billion, with...


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