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Mon 8 Jun 2009 02:14 AM

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Dolphin Energy close to refinancing debt

Refinancing of $3.45bn loan maturing next month said to be in "final documentation" stage.

Abu Dhabi-based Dolphin Energy is reportedly close to refinancing a $3.45 billion loan due to mature next month.Greg Fewer, Assistant Director and Advisor, Project & Corporate Finance Unit at Mubadala - which owns 51 per cent of Dolphin - told newspaper Emirates Business that the commitments are all in place and the energy company is currently sorting out the final details.

Dolphin is best known for its gas pipeline project linking Qatar's giant North Field with the UAE and Oman - the first cross-border gas project in the Gulf Arab region. It pumps around 2 billion cubic feet per day.

The project was financed back in 2005 through a $2.45 billion conventional facility and a $1 billion Islamic loan. 

Back in April reports suggested a new loan, for which Royal Bank of Scotland was said to advising, would include a $1.6 billion commercial tranche and a $500 million Islamic facility. In addition there would be a bond issue worth around $500 million, sources also said.

They added the 10-year loan would carry a margin of 275 basis points (bps) over LIBOR for the first three years, 300 bps to year six and 350 bps thereafter.

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