Deloitte Leads Financial Advisory Services on $650mn Saudi ISTPs

Deloitte Middle East was the lead financial adviser to the consortium of Acciona Agua, Tawzea and Tamasuk on three independent sewage treatment plants (ISTPs) procured by the Saudi Water Partnership Company.

Deloitte facilitated the full process from the bid submission through to financial close and successfully supported the consortium to raise over $650 million of financing for the three projects on a combination of conventional and Islamic tranches. The projects have a combined capacity of 440,000 cu m per day and the financing included $480 million of green financing.

Deloitte advised the consortium through the transition away from LIBOR based financing to close on Secured Overnight Financing Rate (SOFR) and assisted with the tariff adjustment mechanism, supported on arranging the designation of Green Financing, facilitated the hedge execution and was significantly involved in driving the process to financial close.

Robin Butteriss, Partner and Corporate Finance Advisory Leader commented: “We are delighted to have supported the consortium achieve financial close on each of the three projects. The significant appetite from lenders across the globe demonstrates the considerable effort of the consortium and SWPC in delivering these projects, which bodes well for the significant pipeline of PPPs in the Kingdom.

“This deal showcases the Middle East region’s ability to be at the forefront of PPP activity and Deloitte is pleased to support our clients and markets in providing lead advisory services on large scale, complex transactions.”