DUBAI, United Arab Emirates, February 24, 2011 -- Project Finance Magazine selected the “groundbreaking” $2.1 billion financing for Saudi Arabia’s PP11 power project as its “Middle East Power Deal of the Year” for 2010. The Firm served as legal advisers to Saudi Electricity Company (SEC) on the transaction.
In announcing the award, Project Finance editors called attention to the unique nature of the financial package. PP11’s financing took just three months to complete -- “the fastest project financing (agency) US Ex-Im has ever been involved with” -- and it marked the first time that international banks took on uncovered risks without Saudi Arabia granting direct guarantees to SEC, they said.
The publication noted how PP11 represented a novel “club deal” rather than a traditional syndication, and it cited how the deal successfully balanced “delicate inter-creditor arrangements” involving multiple lenders and a range of maturity dates.
“The complexity of the transaction required extensive knowledge of the various funding sources available to complete financing of the project,” said Firm Partner Nigel Thompson, who led the team of legal adviser to SEC. “The ‘club deal’ used in this transaction is, we believe, the beginning of a new module for financing matters in the region.”
The Project Finance article concerning the 2010 Middle East Power Deal of the Year is available here.
About Baker Botts L.L.P.
Baker Botts L.L.P., dating from 1840, is a leading international law firm with offices in Abu Dhabi, Austin, Beijing, Dallas, Dubai, Hong Kong, Houston, London, Moscow, New York, Palo Alto, Riyadh and Washington. With approximately 700 lawyers, Baker Botts provides a full range of legal services to international, national and regional clients. For more information, please visit www.bakerbotts.com.
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