BNP Paribas - GCC Countries - How Local & Foreign Companies Could Benefit from the New Kuwait Development Plan 2010-2014?
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BNP Paribas - GCC Countries
How Local & Foreign Companies Could Benefit from
the New Kuwait Development Plan 2010-2014?
•“The new financing approaches with the privatizations”, presentation by
Christophe Mariot, Regional Head for Structured Finance - GCC Countries
•“Financing needs of contracting companies”, presentation by
George Ghantous, DGM & Head of Corporate BNP Paribas - Kuwait
June 8, 2011Contents
1. BNP Paribas Group
2. Project Finance
3. Financing needs of contracting companies
4. Overview of the financing market
5. PPP scheme
6. Upcoming opportunities in the GCC
7. Selected BNP Paribas references
June 8, 2011 21. BNP Paribas Group
June 8, 2011 3BNP Paribas Group - A Leading International Bank
BNP Paribas Group at a glance Global awards underlining our strong fundamentals
■ Offices in 84 countries and more than 200,000 employees ■ BNPP has received various awards in 2009 and 2010 evidencing:
■ Combined forces through the merger with BNPP Fortis A robust business model,
Joined forces for stronger position: increasing Strong and diversified earnings streams from all its business
attractiveness and growing market share across lines,
businesses Client franchises,
Strong financial results: 2010 Group revenues of EUR Stringent risk policy culture and good cost control.
44 bn ■ Most Impressive Arranger of EMEA Loans, Euroweek, 2011
Enhanced earning generation capacity: EUR 7.8 bn net
■ Ranked 5th most valuable investment banking brand, Brand
income 2010
Finance, 2011
Sound balance sheet and comfortable solvency: top-tier
balance sheet on a global basis ■ Ranked 8th among the world safest banks, Global Finance,
2009 and 2008
■ BNP Paribas Group’s leadership in financing the real
economy, in particular in sectors such as energy, ■ “Global Bank of the Year 2008“, “Best Bank in Western
commodities, infrastructure and asset financing Europe” and “Best Bank in France”, Banker magazine
One of the world’s strongest credit ratings
One of the world’s strongest credit ratings (S&P Feb.2011) 5-year senior CDS Spread (in bps as at 02.22.2011)
256
AAA Rabobank (negative) 244
215
199
HSBC Bank Plc (Stable) BNP Paribas (negative)
AA Banco Santander (negative) Wells Fargo N.A. (negative) 176
164
BBVA (negative)
140
136 132 132
126 124
Barclays Bank Plc (negative) JPMorgan Chase Bank (negative)
AA- Crédit Agricole (negative)
107 102 99 92 91
86
78
72 67
Crédit Suisse (stable) Société Générale (stable)
Deutsche Bank (stable) UBS (stable)
A+ Intesa Sanpaolo (stable) Bank of America N.A. (negative)
RBS Plc (stable) Citibank N.A. (negative) UNICREDITO
WELLS FARGO
RABO
RBoS
NATIXIS
MORGAN STANLEY
CREDIT AGRICOLE
BARCLAYS
GOLDMAN SACHS
BNP PARIBAS
CREDIT SUISSE
UBS
JPM
BBVA
SANTANDER
INTESA
BOFA
SOCGEN
CITIBANK
DEUTSCHE BANK
HSBC
Source: Bloomberg Source: Bloomberg
June 8, 2011 4BNP Paribas Group presence in the GCC
A leading lender in the GCC BNP’s network in the Gulf
■ In the GCC, BNP Paribas has accompanied the
economic growth of expanding economies for
Abu Dhabi (UAE)
more than 3 decades:
Representative office
In Bahrain, where our local full commercial
Kuwait Dubai (UAE)
Branch has been catering to the needs of
major corporates for more than 30 years Bahrain Offshore Business Unit
In the UAE, where main branches actively
Kingdom of Qatar
developed in Dubai, in its Free Trade Zone Saudi Arabia Commercial Branch
as well as in Abu Dhabi for the last 30 years
In Qatar, operating from Doha, for the last 38
years
A comprehensive structure within the GCC
In Saudi Arabia, one of the first foreign banks
■ BNP Paribas has brought to the Region, strong professional
operating from Riyadh
experts, based in Bahrain, catering to the most complex,
In Kuwait, the first foreign bank licensed by specialized and sophisticated needs of our clients in the Gulf:
the Central Bank of Kuwait
■ A comprehensive set up of 6 Full Commercial
Branches in Bahrain, Abu Dhabi, Dubai, Qatar, Corporate Finance Cash Management
Kuwait and Saudi Arabia as well as an offshore
Structured Finance Asset Management
Fixed Income Private Equity
Investment Banking Unit in Bahrain
Debt Capital Market Wealth Management
■ More than 700 employees over GCC Countries, Global Trade Solutions Islamic Banking (BNP
with the regional hub located in Bahrain Paribas Najmah)
June 8, 2011 52. Financing needs of contracting companies
June 8, 2011 6Full range of expertise addressing all your requirements…
…through a Single point of entry
Through a genuine relationship-centred approach, BNP Paribas brings to its corporate clients the professionalism and experience of
its relationship management teams supported by product specialists dedicated to bringing suitable and optimal solutions.
Managing your daily business requirements
Optimize, secure and finance your trade cycle
Bridge your short-term treasury gaps
Guarantee your contractual commitments vis-à-vis your partners
Process your local and international payments
Optimizing your treasury
Enhance cost and operational efficiencies through payments automation
Improve financial control processes through e-banking reporting
Increase visibility on your liquidity towards making the right investment choices
Expanding your business in Kuwait, the GCC or globally
Review your business plans and arrange optimal financing structures matching your cash-flow profile
Arrange transitions from single funding sources to multilateral facilities (syndications / club deals) or debt capital market solutions
Advise you on external growth strategies and opportunities
Managing your financial risks
Keep you informed about financial markets updates, trends and BNP Paribas’ renowned economic research and forecasts
Advise and offer optimal solutions to manage your exposure to foreign exchange, commodities and interest rate fluctuations
We believe that our partnership’s success starts at understanding your business
environment, specificities, strategy and objectives
June 8, 2011 7Comprehensive solutions to the Contracting Industry
OBJECTIVE
Tender Phase Contract Award Contract execution Post-performance To outsource to our
professionals all your
Timely issuance Securing your Guaranteeing your financing matters and focus on
Bid bond issuance accomplishment your core competency
of contract financing needs
guarantees Releasing your
Banker
cash
recommendation Assessing your
Working Capital
Requirements
June 8, 2011 8Contracts Management
Contract award
Assist and advise on wording / structures of the contract guarantees
Issue of Performance and Advance-Payment Guarantees
Arrange syndications / club deals for large transactions
Review your project provisional cash-flow
Structure optimal financing matching your requirements
Help you preserve your profitability against currency fluctuations (multiple-currency inflows / outflows)
Getting started
Fund your mobilisation costs (overdraft, short-term loans)
Secure and finance your procurement (letters of credit, stand-by LCs, payment guarantees, import loans, trust receipts…)
Finance your equipment (letters of credit, medium-term loans…)
Managing your receivables
Bridge your treasury requirements, through receivables discounting, matching your agreed payment terms.
Depending on your client’s creditworthiness, this asset-backed financing BNP Paribas may assist you in optimizing your financing costs and
/ or freeing your balance-sheet.
Optimizing your treasury and account monitoring
Release your cash through issuance of retention guarantee
Help you track your project-related inflows and outflows through contract-specific accounts for each currency
Manage your local and international payments
Process your FX transactions at competitive terms
Centralize your cash-flow including non-Kuwait based contract-related, through our GCC/ global network
June 8, 2011 93. Project Finance within Structured Finance
June 8, 2011 10Project Finance - A Worldwide Coverage
Project Finance across the Globe in figures Worldwide Coverage
3 regions with regional hubs
6 local teams
160 dedicated professionals (post Fortis Merger)
223 m Eur worldwide revenues
19.1 bn Eur worldwide commitment end 2010
460 projects worldwide end 2010
Tier 1 player Regional hub
Local office
Expertise and Commitment in all sectors PF Portfolio by Sector
Expertise in all sectors and Country-specific knowledge
Power (conventional & renewable)
Transportation
Oil & Gas I nfra
16%
25%
Infrastructure & Infrastructure PPP Water & Environment
5%
Expertise in all Project Finance Services
Strong qualifications in advising, structuring, arranging
and agenting Project Finance transactions Oil & Gas
16%
Building innovative financial solutions and developing Conventional Power
Renewable Other
creative ideas 24%
9% 5%
Top positions in main possible debt sources
Syndication loan markets
Export Credits & Multilaterals Project Finance Portfolio
Bonds End 2010 Commitment by Sector
Islamic Financing
June 8, 2011 11Project Finance - A strong presence across various sectors
Power Renewables Oil & Gas Petrochemicals
Offtake Wind LNG: liquefaction and Refineries
tolling or PPAs Hydro receiving terminals Polyolefins
merchant Solar Exploration &
Production (upstream) Other downstream
Thermal (CCGT / Coal / Geothermal products (incl.
Oil) Transportation : oil & fertilisers)
Single Asset or Portfolio Biomass gas pipelines, LNG Biofuels
ships
Transmission lines Storage Gas-to-Liquids
Transportation Water & Utilities PPP Accommodation Urban Waste
to Energy
/Public Buildings
Highways Water distribution Police Headquarters
Railways / Rolling stock Water treatment Hospitals
Airports (including desalination) Prisons
Ports Regulated gas & Schools Defence Equipments /
electricity distribution Satellites
June 8, 2011 12Project finance deal map in the GCC
KSA Qatar
■ Ibn Rush Petrochemical ■ Rabigh Refinery and ■ Al Dur IWPP ■ Q-CHEM
■ Ibn Zahr Petrochem ■ Ras Laffan IPP ■ QAPCO
■ Marafiq IWPP ■ Saudi Chevron Petrochem ■ Ras Laffan II & III LNG ■ QAFAC
■ NatPet ■ Saudi Kayan Petrochem ■ Ras Laffan LNG ■ Qatalum
■ NSCSA ■ Saudi Aramco IPP ■ Rasgas II &III LNG ■ Qatar Vinyl Co.
■ Rabigh IWSPP ■ Yansab Petrochem ■ Ras Abu Fontas IWPP ■ Qatargas IV LNG
■ Ma’aden phosphate Co ■ National Chevron Phillips ■ Oryx GTL LNG ■ Qatargas III LNG
■ NGL 4 Tranches ■ Qatargas II LNG
■ 1-2 QGTC
Kuwait
■ Greater Equate ■ Equate Petrochemical UAE
Petrochemical
■ Dolphin Energy LNG ■ Taweelah A2 IWPP
■ Fujairah IWPP ■ Shuweihat IWPP
■ Palm Water ■ EMAL
■ Taweelah A110 IWPP ■ ISTP 1 and 2
Yemen ■ Taweelah B IWPP ■ YahSat PPP
■ Yemen LNG ■ Taweelah A1 IWPP ■ Shams 1
■ Masdar City ■ Emirates Airlines
Bahrain
Oman
■ Al Dur IWPP ■ Alba Aluminium ■ Sohar IWPP ■ Oman Polyethylene
■ Al Hidd IWPP ■ Bapco Refinery and ■ Salalah IWPP ■ Oman Polypropylene
■ Al-Ezzel IPP Petrochemical
■ Barka II IWPP ■ Omifco Fertiliser
■ Barka IWPP ■ Sohar Refinery
■ Manah II IPP ■ Oman LNG
■ Manah I IPP ■ Qalhat LNG
■ Sohar Aluminium
June 8, 2011 13Over the years, a recognized worldwide leader
Infrastructure Journal – 2010 Global MLA Recent Awards
Total USDm %
Arranger of the Year 2010, Infrastructure Journal
Rank Mandated Arrangers
1 BNP Paribas 10,304.3 7.14 PPP Arranger of the Year 2010, Infrastructure Journal
2 Crédit Agricole Group 7,076.9 4.91
Transport Arranger of the Year 2010, Infrastructure Journal
3 Société Générale 5;766.2 4.00
4 Bank of Tokyo-
Renewables Financial Advisor of the Year 2010, Infrastructure
4,504.4 3.12
MitsubishiUFJ Journal
5 Grupo Santander 4,176.7 2.90
Best Global Infrastructure & Project Finance House, Euromoney,
6 UniCredit 3,841.4 2.66
2010 & 2009
7 ING Bank 3,311.9 2.30
Highly commanded in Infra. and Project Finance, The Banker,
8 SMBC 3,224.8 2.24
2009
9 Natixis 2,984.0 2.07
10 La Caixa 2,937.4 2.04 Ranking
No 1 Global MLA for Project Finance Loans,
Infrastructure Journal, 2010
No 3. Global MLA for Project Finance Loans, Dealogic, 2010
Infrastructure Journal – 2009 Global MLA
No 2. Global MLA for PPP Project Finance Loans, Dealogic, 2010
Rank Mandated Arrangers Total USDm % No 1. EMEA Project Finance Loans, Project Finance
1 Calyon 4,468.7 4.25 International & Infrastructure Journal, 2010
2 BNP Paribas Group 3,519.3 3.27 No 3 MEA Financial Advisor, Infrastructure Journal, 2010
3 Grupo Santander 3,432.8 3.26
Previous Ranking
4 SMBC 3,381.6 3.21
5 Societe Generale 3,215.3 3.05 No. 2 Global MLA for Project Finance Loans (incl. Fortis),
6 WestLB 3,189.1 3.03 Infrastructure Journal, 2009
7 Caixa Geral de Depositos 3,001.5 2.85 No 1. MEA Financial Advisor, Infrastructure Journal, 2009
8 State Bank of India 2,450.0 2.33
No. 1 Financial Advisor of Global Project Finance deals, Project
9 Bank of Tokyo- Finance International & Infrastructure Journal, 2008
2,228.8 2.12
Mitsubishi UFJ
No 1. Global Project Finance Loans Mandated Arranger, Thomson
10 ING Bank 2,176.2 2.07
Reuters, 2007
June 8, 2011 14Advisory role
Bidding Phase Closing phase
Bankability Financial Lending group Finalisation of Achievement of
Steps
Analysis Structuring Constitution Due diligence Financial Close
Review and Assist the Assist the sponsors Finalise the Assist the Consortium in
analyse the Consortium in in their relations with selection and the concession contract
tender designing an optimal external advisors: appointment of: and other agreements
Documentation and bankable negotiations
financial structure - Legal - MLA(s)
Identify the Keep the Financial
project major Identify the relevant - Insurance - Co- model, the Information
risks financing sources underwriter memorandum and the
- Technical participant Financing Plan up to
Action Assist in the Develop a financial date as negotiations
structuration of model which will be Prepare a Preliminary - Equity progress
the appropriate able to test the Information providers, or
mitigants robustness of the Memorandum (PIM) Assist the Consortium in
projects under to be sent to pre- - Funds securing all conditions
different scenarios selected institutions precedent
capable of playing the Assist the
role of MLA Consortium in
securing final Due
Secure a preliminary Diligence reports
commitment from
these institutions
June 8, 2011 15Arranger Role…complementary to the advisory role
Arranging
Strong appetite for arranging roles
Focus on transactions where our arranging role can add value
Strategic utilisation of BNP Paribas’ balance sheet
Confirmed by our worldwide leader position in Project Finance MLAs League Tables
Ability to advise if the client so chooses
Generally, we are not interested by a simple participation
Advisor and Arranger: Two complementary roles
As Financial Adviser, BNP Paribas' priority is always to protect the Sponsors’ interests, and push the limits of bankability
Due to its consistent top bookrunner position, BNP Paribas has a true insight into how the markets are reacting at any given time
BNP Paribas usually underpins its advisory mandates with a commitment to bid as lead arranger if the Sponsor so wishes
Conflicts of interest are removed by virtue of the fact that:
When BNP Paribas bids on its own for the Lead Arranging role, it is always in competition with other prospective MLAs
If the Adviser has performed, there should be little scope for advisory work once the MLAs have been appointed
On multiple occasions, BNP Paribas has been both Adviser and Arranger (Ankara BO, Sohar IPP,QVC, Taweelah A1, Qatalum,
YahSat, …)
June 8, 2011 164. Overview of the financing market
June 8, 2011 17Constraints in liquidity due to the global crisis
PF market trend: a rebound in 2010 Global Project Finance volumes
USD bn Deals
From 2002 to mid-2008, the Project Finance market showed
constant growth with record volumes resulting from increasing
demand in Power, Infrastructure and Oil & Gas
Market conditions since Summer 2008 have resulted in a
significant backlog of transactions as the need for infrastructure
continues to be strong despite the global economic recession
Global Project Finance volume reached a record USD 354.6bn in
2010, up 22% on the USD 289.9bn raised during 2009 and up
11% on the previous full year high in 2008 (USD 320.5bn)
Project finance loan volume reached USD 279.8bn in 2010, up
27% compared with USD 220.7bn in 2009, the highest level on
record.
Source: Dealogic 2010
PF market per sector: rebound in 2010 Back to more liquidity
Market liquidity for PF transactions has returned to both the bank
and bond markets with significant improvements over the last
months: NordStream, Jubail, Shams, The Flemish Schools…
Markets back to pre-crisis structures with longer maturities, cash
sweeps gradually moving out, shorter tails accepted and less
equity than 2009/2010 deals
Lending appetite has significantly increased, driven by:
Improved balance sheet position
Renewed competition between banks
Source: Dealogic 2010
June 8, 2011 18GCC an encouraging recovery
A strong recovery from the global crisis thanks to a positive Given sustained hydrocarbon revenues, fiscal performances
conjectural situation combined with an adequate answer will be comfortable in 2010 and 2011. Public debts are stable at
Rebound in oil prices boosted oil exporters’ receipts
moderate/low levels
Sizable and rapid fiscal policy response, particularly for oil Ease in liquidity ratio, %
130
exporters, to strengthen the non oil industries and based on
strong public sector balance sheets through stimulus 120
measures 110
Spillover effects on regional oil importers (strong trade links) 100
90
Saudi Arabia
80 Bahrain
Kuwait
Qatar
70
Oman
UAE
60
08
09
08
9
09
0
8
8
9
9
0
08
09
10
-0
-0
-0
-0
-0
-1
-1
il -
v-
il -
v-
s-
s-
s-
pt
pt
nv
nv
ai
ai
ai
ju
no
ju
no
ar
ar
ar
m
m
m
se
se
ja
ja
m
m
m
Source: IMF
Economic Outlook for the region closely linked to global
development, through the oil prices
Stagnant demand from advanced economies will be offset by
rapidly growing emerging markets
Oil and Gas is set to increase, particularly in Saudi Arabia
and Qatar, thanks to some major projects expected to come
on stream
Banks fundamentals remain sound and state support is
strong
GCC banks are on average well capitalized.
NFA position remains positive in general
Sovereign support to banks is strong, notably via
recapitalisation
Source: IEA Oil Market Report 10 December 2010
Source : Arabia Monitor 2010
June 8, 2011 19MENA challenges ahead
Credit growth
Credit conditions still suffering from the Dubai issues and fearing the future debt restructuring and refinancing walls
Government support has so far enabled the market to continue functioning and has strongly limited the spillovers effects
Necessity to continue this work of financial intermediation revival
Refinancing walls
USD 70bn of debt due in 2011 (GCC)
Regional bond markets active to tap into global investor appetite (IPIC, IDB)
Inflation
Sensitivity to commodity prices that is leading to inflationary pressures
Economic reforms have to continue and the fiscal space to be carefully managed
The reforms have mainly stayed on track during the crisis and consequently allow the continuity of the economic transformation
process
In the future years the ability to manage prudently oil revenues while trying to diversify the economic base and to scale up non oil
sources of growth will be key
Soverign Cah Market Spreads
Source : BNP Debt Weekly Middle East
June 8, 2011 205. PPP scheme
June 8, 2011 21Main features of the possible economic model
The selection of the economic model will primarily depend on the nature of the underlying assets, in particular:
whether the scope of the underlying assets is well-defined and expected to remain mostly unchanged in the future or whether the
assets are expected to be subject to evolutionary changes that may not be fully predictable on day one
whether demand risk may be transferred to the private sector and whether the project company may collect revenues directly from
users
Overall three main categories of economic model could be considered :
June 8, 2011 22PPP scheme (availability based, no traffic risk)
Principles
Transfer of risk to the private sector primarily limited to construction, operation and maintenance;
Payments to the Concessionaire is made on the basis of the “availability” of the assets;
The payment mechanism should:
– cover operating costs, debt service and equity return of the project company under a base case;
– adjust for sub-standard performance, and deductions should reflect the severity of failure.
Main advantages of PPP Scheme vs. Concession Scheme
Often viewed as less risky because traffic risk is not shifted. Low risk profiles (no traffic risk) justifies more aggressive financial structure
(leverage, debt tenor and pricing, debt service cover ratio and equity return);
Provide more flexibility to the Grantor in relation to tariff policies;
Provide more value in developing “smart design” than developing thorough traffic risk and tariffs level assessment;
Expectation that availability payment (vs. traffic risk) will be reflected in lower cost of capital for bidders;
Issues/Challenges
Upside for the project company is limited by the maximum availability payment: it may impact the risk discussions/allocations;
Potential creditworthiness issues in respect of the Grantor: if the Grantor is not the State, support from the State may be needed.
Ultimately, State’s involvement is significant.
Amount of debt to be raised by the Concessionaire may be very high given the scale of the investment raising liquidity issues: up-front
public subsidy has to be considered in order to scale down the amount of debt and the availability payment.
June 8, 2011 23Kuwait Government privatisation strategy
Major opportunities driven by the USD 125 bio national 5-year plan
A Public Private Partnership (“PPP”) program established by the Government of Kuwait in order to create a favorable environment
A strategy to promote and support increased private-sector participation in the infrastructure development
A program providing significant investment and financing opportunities for the private sector
The most significant objective of the plan include vesting into private sector the right to lead development projects through:
the gradual reduction of public sector dominance
the increase of private sector participation
the increase of citizen ownership of economic activities
Paternships Technical Bureau (“PTB”) to promote Investments……
Through the implementation of the High Committee and the PTB the Kuwait government is aiming at creating the perfect environment to
promote its mega projects to the private sector
The High committee and the PTB will help ensuring:
the pivate sector has more way to play its basic role in connection with production, employment, administration and income generation
Kuwait organizational statutes and legal environment are well designed to attract financial investments
PTB is the focal point for Kuwait’s PPP program and is involved in all phases of PPP projects from inception to financial close
PTB is to implement the solutions to provide the conditions for implementing development projects and facilitate paternship between the
public and private sectors
A development plan designed to achieve sustainable and diversified development of Kuwait
June 8, 2011 246. Upcoming opportunities in the GCC
June 8, 2011 25Infrastructure - GCC transport developments
Necessity to meet the pressing regional logistics demands
Key driver of the rail industry will be public-private partnerships
Planned / under way transport infrastructure projects in the GCC: USD 220bn+
Planned / under way transport infrastructure projects in the MENA: USD
365bn+
GCC Railway Network
Project Estimated Costs: USD 30bn
Location: Kuwait, Bahrain, Saudi Arabia, Oman, Qatar, UAE
2,117km rail network starting from the North of Kuwait (border with Iraq) to
Muscat with connections with the Saudi railway in Damman and passage
through all the industrial centers of the region (Messaied, Jebel Ali, Sharjah,
Sohar, Barka).
The project also includes bridges, causeways, tunnels and cutting more than
21km long.Diesel-powered trains operating at speeds of up to 200km/h would
carry passengers and freight between the six states.
The consortium of Systra, Khatib and Alami, and Canrail is the project technical
consultants and the World Bank will be advising on the tendering process
The six GCC countries will be responsible for developing their sections of the
rail line independently. However, the chosen companies to execute the project
on their territory should all abide by unified standards and specifications
In each of the GCC’s capitals, people will travel on metro and tram systems built
to reduce congestion and facilitate movement
Start date: undisclosed, but completion expected in 2017. By 2020, the GCC
railway will have been operational for three years, transporting passengers and
freight around the region
June 8, 2011 26Euromoney Deal of the Year 2010: Shams One - UAE
Presentation Project Description Total Project Costs
Borrower Shams Power Company The Shams One Project involves the design, construction, operation
PJSC circa. USD 750m
and maintenance of a Concentrated Solar Power (“CSP”) plant located
in Abu Dhabi on a build, own, operate basis.
Sponsors Total - Abengoa -
The Project has a total installed net rated power output of 109 MW and Financing split
Adfec/Mubadala
is based on the proven parabolic trough (PT) technology.
BNP Paribas role
The Project is sponsored by Abu Dhabi Future Energy Company PJSC
and Total Abengoa Solar Emirates Investment Company. ADFEC is a
Financial Adviser wholly-owned subsidiary of Mubadala Development Company. The 150
share ownership of the Project is 60% for ADFEC as local shareholder
and 40% for the Foreign Shareholder, replicating the successful mUSD
scheme applied by ADWEA in IWPP transactions.
EPC Contractors are Abeinsa/Abengoa solar consortium. 600
O&M: Abengoa Solar & Total.
Senior Debt Equity
June 8, 2011 27Greater Equate
Project sponsored by Petrochemical Industries Company KSC 2006 Kuwait
(PIC), wholly owned by the Kuwait Petroleum Company (KPC),
The Dow Chemical Company via Dow Europe Holding B.V.,
Boubyan Company KSC (BPC) and Al-Qurain Petrochemical
Industries Company KSC (QPIC)
G R E A T E R E Q UA T E
The petrochemical projects belong to 3 JVs: EQUATE, The USD 3B n P etro chemical Co mplex
Kuwait Olefins Company KSC (“TKOC”) and The Kuwait Styrene
Company KSC (“TKSC”) Lead A rranger
The Greater Equate debt was aimed at financing the following
Expansion of the Polyethylene facilities
Olefins II Project (TKOC)
Styrene Project (TKSC)
Utilities and Infrastructure Project
After Petrochemical Industries Company decided to merge
another olefins project with Equate 2, the plant's capacity will be
doubled from original 650,000 tons per year of ethylene, 350,000
tpy of polyethylene and 350,000 tpy of ethylene glycol
June 8, 2011 287. Selected BNP Paribas References
June 8, 2011 29Selected Advisory and Arranging Power References
Middle East – IWPP Gulf – Power
Deal of the year Deal of the year
Ongoing Kuwait 2009 Oman 2009 Jordan 2009 Bahrain
Kuwait Az- Zour SALALAH IWPP AL QATRANA IPP AL DUR
1500 MW Power and btw
102-107 MIGD 445MW Independent Water USD 461M 373MW CCGT Power USD 2.2Bn 1,234MW Power
’
Desalination Plant Power Plant Plant Facility & 48 MIGD Desalination
Facility
Financial Advisor to the PTB Financial Advisor Financial Advisor & Mandated Financial Advisor
Lead Arranger
2009 UAE 2008 Qatar 2007 UAE 2007 Saudi Arabia
SHUWEIHAT II RAS LAFFAN C IWPP EMIRATES ALUMINIUM MARAFIQ IWPP
USD 3.9Bn 2,730MW gas-fired USD 7Bn 0.7mtpa aluminium USD 3.3Bn 2,750MW power and
USD 2,7Bn 1,507MW Power &
100MIGD Desalination Plant power & 63 MIGD desalinisation smelter and 2,000MW power 176MIGD water facilities
plant plant
Documentation Bank Mandated Lead Arranger & Financial Advisor, MLA, Hedging
Mandated Lead Arranger
Bookrunner Bank & Bookrunner
Middle Eastern Power Middle East - Power IWPP
Deal of the year Deal of the year
June 8, 2011 30Selected Advisory and Arranging Renewables References
Ongoing Colombia 2010 UAE 2009 USA 2009 USA
HIDROTUANGO SHAMS ONE FIRST WIND - MILFORD I EME - VIENTO II
USD 2.3Bn Hydro Power Plant 100 MW Solar Thermal Power USD 516M 203.5MW Wind Farm USD 482M Recapitalization of
Project Plant Financing 305MW Wind Power Portfolio
Equity Advisor Financial Advisor Lead Arranger Arranger & Bookrunner
2009 DRC 2008 Italy 2008 UK 2008 Laos
INGA 3 RINNOVABILI FRED OLSEN WIND THEUN HINBOUN
HYDROPOWER
4,500 MW Hydro Power Project EUR 773M Wind Farm Portfolio GBP 303M 315.5MW Wind Farm USD 715M Expansion of 210MW
Construction Refinancing Hydro Power Project
Financial Advisor Mandated Lead Arranger Lead Arranger Financial Advisor, Lead
Arranger, Doc & Intercreditor
Bank
Europe – Renewable Asia Pacific – Renewable
Deal of the Year Deal of the Year
June 8, 2011 31Selected Advisory and Arranging Infrastructure References
2009 UAE 2009 UAE 2008 UAE 2008 UAE
2nd INDEPENDENT SEWAGE MANHAL - LA SORBONNE PALM JEBEL ALI YAHSAT
TREATMENT BOOT PROJECT PPP Life: 15 years
USD 500M Wastewater USD 432M University Potable Water System USD 1.7Bn Satellite
Treatment Plant Construction Communications Project
Financial Advisor Lead Arranger Financial Advisor Financial Advisor & Mandated
Lead Arranger
2008 UAE 2008 Saudi Arabia 2006 Oman
SHARQIYAH-SUR
DESALINATION PLANT
1st INDEPENDENT SEWAGE SAUDI LANDBRIDGE
Concession Life: 20 years
TREATMENT BOOT PROJECT Concession Life: 50 years
USD 400M Wastewater USD 8.0Bn Railway Link Project USD 150M Desalination Plant
Treatment Plant between Riyadh and Jeddah
Financial Advisor Financial Advisor Financial Advisor to a bidding
Consortium
June 8, 2011 32Selected Advisory and Arranging Oil & Gas References
Asia Pacific Middle East - Oil & Gas
Deal of the year Deal of the year
2010
2010 Saudi Arabia
2009 Papua New 2009 Qatar 2009 Egypt
Guinea
MA’ADEN ALUMINIUM
PNG LNG DOLPHIN ENERGY TCI SANMAR
MA’ADEN ALUMINIUM
USD
USD5Bn
5Bn Financing
Financing
USD 18.3Bn LNG Development USD 6.36Bn Refinancing USD 868M EDC-VCM-PVC
of the giant Aluminum Complex
Financing
smelter
Mandated
AdvisorLead Arranger
to Alcoa Mandated Lead Arranger Mandated Lead Arranger Structuring Bank
Mandated Lead Arranger
2008 Saudi Arabia 2008 Yemen 2008 Saudi Arabia 2008 Saudi Arabia
SAUDI POLYMERS COMPANY YEMEN LNG MA'ADEN PHOSPHATE SAUDI KAYAN
USD 5.2Bn Expansion of USD 4.9Bn 6.7mtpa LNG Plant USD 5.5Bn Fertilizer Project USD 10Bn Greenfield
Petrochemical Complex Petrochemical Complex
Mandated Lead Arranger, US- Mandated Lead Arranger Mandated Lead Arranger Financial Advisor & Initial
Exim Facility Agent Mandated Lead Arranger
Middle Eastern Oil &Gas Middle Eastern Industrial
Deal of the year Deal of the year
Global Deal of the year
June 8, 2011 33Selected railway references
June 8, 2011 34Selected PPP/PFI references
June 8, 2011 35BNP Paribas team contact details
BNP Paribas IN THE GCC
Jean-Christophe Durand Christophe Mariot
Global Head of the MESA Region Regional Head - Structured Finance
Head of the MEA Region (CIB) - Country Head Bahrain GCC Countries
BFH West Tower – PO BOX 5253 Manama BFH West Tower – PO BOX 5253 Manama
Phone: +973 17 86 60 02 Phone: +973 17 86 60 50
e-mail: jean-christophe.durand@bnpparibas.com e-mail: christophe.mariot@bnpparibas.com
BNP Paribas IN KUWAIT
Alain Lamarlere George Ghantous
Country Head Deputy General Manager
Dar Al Awadi Complex - PO Box 21188 Safat 13072
Dar Al Awadi Complex - PO Box 21188 Safat 13072
Kuwait
Kuwait
Phone: + 965 22 98 76 10 Phone: + 965 22 98 76 20
e-mail: alain.lamarlere@bnpparibas.com e-mail: george.ghantous@bnpparibas.com
Anita Basquin Jihad EL Alam
Head of Trade Center Cash Management Officer
Dar Al Awadi Complex - PO Box 21188 Safat 13072 Dar Al Awadi Complex - PO Box 21188 Safat 13072
Kuwait Kuwait
Phone: + 965 22 98 76 60
Phone: + 965 22 98 76 29
e-mail: jihad.elalam@bnpparibas.com
e-mail: anita.basquin@bnpparibas.com
June 8, 2011
07/06/2011 36Disclaimer
This presentation has been prepared by BNP PARIBAS for informational purposes only. Although the information contained in this
presentation has been obtained from sources which BNP PARIBAS believes to be reliable, it has not been independently verified and no
representation or warranty, express or implied, is made and no responsibility is or will be accepted by BNP PARIBAS as to or in relation
to the accuracy, reliability or completeness of any such information.
The information and opinions contained in this presentation are not intended to be the sole basis upon which the implementation of the
operation contemplated herein (the “Operation”) can be decided. It is therefore advisable for the recipient(s) to make its/their own
judgement and assessment of the information and the Operation contained in this presentation.
Opinions expressed herein reflect the judgement of BNP PARIBAS as of the date of this presentation and may be subject to change
without notice if BNP PARIBAS becomes aware of any information, whether specific to the Operation or general, which may have a
material impact on any such opinions.
BNP PARIBAS will not be responsible for any consequences resulting from the use of this presentation as well as the reliance upon any
opinion or statement contained herein or for any omission.
This presentation is confidential and may not be reproduced (in whole or in part) nor summarised or distributed without the prior written
permission of BNP PARIBAS. The recipient(s) of this report agree(s) to keep its content strictly confidential and undertake(s) not to
disclose the information contained herein to any person other than those of its/their employees who strictly need access to it for the
purpose of the Operation.
© BNP PARIBAS. All rights reserved.
June 8, 2011 37You can also read
