First Energy Bank successfully completes sale of strategic stake in leading Bahrain power plant.
First Energy Bank along with a consortium of GCC financial institutions which includes Ibdar Capital, Bahrain Islamic Bank, and Bunyah GCC Infrastructure Fund (managed by Arqaam Capital (regulated by the Dubai Financial Services Authority)) have successfully divested their approx. 20% shareholding in Al Dur Power and Water Company (ADPWC) to Kyuden International Corporation (KIC), which is the international business arm of Kyushu Electric Power Company (Kyushu Electric), one of Japan’s leading power utilities. Kyushu Electric owns and operates generation, transmission and distribution facilities in over 10 countries including Japan.
ADPWC is a gas-fired power generation and seawater reverse osmosis desalination facility in the Kingdom of Bahrain. It has a net power capacity of 1,234 MW and 48 MIGD of water production capacity. Developed on a build, own and operate (BOO) basis, ADPWC is recognized as a key element of Bahrain’s power and water sector, providing energy and water since initiating commercial operations in 2012.
The sale to the Japanese energy group is one of the most significant cross border transactions in Bahrain.
The management of ADPWC highlighted their high appreciation for the strong and professional guidance provided by the directors from First Energy Bank, Ibdar Capital, Bahrain Islamic Bank, and Bunyah GCC Infrastructure Fund (managed by Arqaam Capital) since inception of the project and welcomes the esteemed Japanese partner (KIC) into the company.
Mohammed Khalid Al Khan, Investments and structured finance, commented, “We at First Energy Bank are delighted to announce the successful divestment of our shareholding in Al Dur Power and Water Company. I am very pleased to welcome one of the largest Japanese energy groups to the Kingdom of Bahrain. This is a landmark transaction for us at FEB, as we have proudly contributed to the growth of Al Dur to become the leading power plant in the Kingdom of Bahrain. As an outgoing director of Al Dur, I am very confident that KIC will be the ideal partners for the company going forward. This is one of the most important cross border transactions in Bahrain and we at FEB are happy to have played a key role in it.”
Naser Miludi, Investments and structured finance, commented, “Despite the challenges of the pandemic and the complexity of the transaction, we are delighted that the transaction was completed successfully. I would like to express my gratitude to all advisors, our partners as well as to the Government of Bahrain for their continued support.”
BDA Partners acted as exclusive sell-side financial advisor. Clifford Chance acted as legal counsel to the sellers.