Copying and distributing are prohibited without permission of the publisher
Ma'aden and Barzan hint at new players in Middle East lending groups
05 December 2011
Two large project financings have closed in the Middle East in recent months without the participation of some stalwart international project lenders. Paul Smith looks at who has filled the liquidity gap.
If the Qatari Barzan gas deal closes as planned at the end of November, its 30-bank club will be a timely rejoinder to doom-sayers who say that the international project finance bank market is only 12-strong. Barzan has captured the highest ever amount of bank debt commitments in the Gulf Cooperation Council region, with over $6 billion committed. The response is hardly a sign of crisis in project finance lending.
The closing of the $10.3 billion Barzan gas project, sponsored by Qatar Petroleum (QP) and ExxonMobil, follows on the heels of another multi-billion GCC project finance deal that closed in October, Ma’aden and Alcoa’s $3.6 billion bauxite mine and alumina refinery in Saudi Arabia. Both Barzan and the Ma’aden deal highlight a shake-up to the old order but in different ways: there were no international commercial banks on Ma’aden and Alcoa’s deal, and a different mix of banks on Barzan....
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email info@projectfinancemagazine.com.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Subscribe
Free trial
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.
Free Trial