QIB participates with $ 90 million to finance QEWC
26/09/2013, Doha, Qatar
Qatar Islamic Bank (QIB) contributed USD 90 million in a co-financing by a syndication of Qatari banks to the Qatar Electricity and Water Company (QEWC) for the purpose of establishing a desalination project “RAF A2” currently under construction at Ras Abu Fontas which is considered as Qatar’s power production and water desalination site. The plant is set to start operations in June 2015 to produce 36 million imperial gallons per day (MIGD), representing 10% of Qatar’s national water production.
The financing agreement was signed during an official ceremony attended by QIB Group Chief Executive Officer Mr. Bassel Gamal, QEWC General Manager Mr. Fahad Al Mohannadi, QIB’s Assistant General Manager of Corporate Banking Mr. Saeed Al Khayareen, and a number of high-ranking officials from co-financing banks.
In line with this agreement, QIB will act in the capacity of Islamic Facility Agent and Islamic Security Trustee. The transaction will notably introduce for the first time in a project finance deal in Qatar, a share of Islamic hedging in the form of a commodity-based Profit Rate Swap.
Commenting on the co-financing deal, QIB’s Group Chief Executive Officer Mr. Bassel Gamal said: “Co-financing this project comes within the bank’s strategic vision of offering Islamic financing solutions to national institutions. This is another confirmation of our pioneering role in supporting Qatar’s economic development projects in line with Qatar national vision 2030.”
He added: “QIB takes pride in its established cooperation with QEWC, considered to be one of the most noticeable national assets, as we had previously co-financed many of their projects. We are always keen on furthering this collaboration in a way that would serve our common interests.”
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