International law firm Trowers & Hamlins has acted as UAE legal counsel to the lenders and bond underwriters on the $2.3 billion refinancing of the Shuweihat S2 Independent Water and Power Project (IWPP) in Abu Dhabi.

The refinancing comprised $1.475 billion of long-term facilities from lenders, including Japan Bank for International Cooperation, and a $825 million bond issuance by the project company, Ruwais Power Company.

Edmund Sia, partner at Trowers & Hamlins who led the firm’s team on the deal, said: “This project refinancing represents the first bond issuance by an IWPP company in the UAE.”

He added: “As this is the first transaction of its kind, there were a number of novel challenges that arose on this deal, but a successful closing was achieved due to the commitment, experience and expertise of all the teams involved. We are delighted to have advised on this pioneering transaction.”

The 1,510MW power and 100 MIGD seawater desalination Shuweihat S2 plant is owned by Ruwais Power Company, and Ruwais is 60 percent owned by Abu Dhabi National Energy Company (TAQA) and Abu Dhabi Water Electricity Authority (ADWEA).

The remaining 40 percent is owned by a consortium of companies which is indirectly owned by GDF Suez, Marubeni Corporation and Osaka Gas Co., Ltd.

The plant’s entire electricity and water output is sold to ADWEA’s fully-owned Abu Dhabi Water and Electricity Company under a 25-year power and water purchase agreement.

Trowers & Hamlins’ team, which advised on all UAE law aspects of the transaction, was led by partner Edmund Sia with support from Rachel Clayson, Shaun Hardiman, Jonathan Astbury, Daniel Archer and Reem Jano.