BDA advises consortium on sale of stake in Al Dur Power & Water to Kyushu Electric

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BDA Partners is pleased to announce that its clients, First Energy Bank, Bahrain Islamic Bank, Ibdar Capital and Bunyah GCC Infrastructure Fund, have successfully sold their respective ownership positions, totalling 20% equity interest, in Bahrain’s main power and water supplier, the Al Dur Power and Water Company (“Al Dur”). The acquirer is Kyuden International Corporation (“KIC”), the overseas business arm of Kyushu Electric Power Company, one of Japan’s leading power companies. BDA was the exclusive financial advisor to the selling shareholders. Terms were not disclosed.

Mohammed Al Khan, Vice President, First Energy Bank, said: “We are very pleased to welcome one of the largest Japanese energy groups to the Kingdom of Bahrain. This is a landmark transaction for us as key investors in Al Dur since its inception to be the leading power plant and key strategic asset of Bahrain. We are very confident that KIC will be the ideal partner for Al Dur. This is one of the most significant cross-border transactions in Bahrain and reinforces the Kingdom’s attractiveness for foreign investors.”

Nabeel Kazerooni of Arqaam Capital Limited, the Investment Manager of the Bunyah GCC Infrastructure Fund, commented: “I would like to express my gratitude to all of the people involved in this complex cross-border transaction as well as to the Government of Bahrain. As an investment manager, we are confident that KIC will bring additional value to the Al Dur facility and to the overall utility sector in Bahrain. This milestone also marks a significant distribution event for Bunyah’s investors.” 

Mark Webster, Partner and Head of Services, BDA Partners, said: “We are delighted to have secured a successful outcome for our clients in this high profile regional infrastructure services project. Despite the challenges of the pandemic, BDA executed a global process to secure the right counterparty and delivered a closed transaction. We’re happy to help connect Japan and Bahrain more closely. As the new shareholder, KIC clearly has the attributes to be a valuable strategic partner to Al Dur and its owners in the years ahead. We wish them well.”

Ahmed Al Balooshi, Senior Advisor – Middle East, BDA Partners, remarked: “This is a notable transaction – for BDA, our clients and also the Kingdom of Bahrain. It demonstrates global interest in strategic assets both here and in the wider Gulf region. We expect more investors, particularly Asian infrastructure players, to consider the Gulf as an attractive destination for their international diversification strategy. We look forward to BDA facilitating more transactions like this in future.”    

About Al Dur Power and Water Company

Al Dur Power and Water Company is the principal ownership entity of the Al Dur Independent Power Plant, a US$2.2bn gas-fired greenfield 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 BOO (build, own and operate) basis, Al Dur is recognized as a key element of the privatization of Bahrain’s power and water sector, providing energy and water since entering commercial operation in 2012. The current off-take arrangement with the Bahraini authorities is contracted to run until 2036.

About First Energy Bank

First Energy Bank (“FEB”) is a wholesale Islamic bank, headquartered in the Kingdom of Bahrain. Established in 2008, FEB acts as a financial partner in project development, joint ventures, mergers and acquisitions, and the purchase of assets and asset portfolios. www.1stenergybank.com

About Bahrain Islamic Bank

Bahrain Islamic Bank (“BisB”) is an Islamic retail bank licensed by the Central Bank of Bahrain and is the first Islamic bank in Bahrain and the fourth in the GCC. It has played a pivotal role in the development of the Islamic banking industry and the Kingdom’s economy, and is listed on the Bahrain Bourse. BisB has established itself as the leading provider of Sharia-compliant integrated financial solutions in Bahrain. www.bisb.com

About Ibdar Capital

Ibdar Capital is a Sharia-compliant investment company based in the Kingdom of Bahrain. The company is focused on alternative investments, primarily Private Equity, International Real Estate, and Aircraft Leasing. www.ibdarcapital.com

About Bunyah GCC Infrastructure Fund (Bunyah)

Managed by Arqaam Capital Limited (regulated by the DFSA), Bunyah was set up in 2008 to focus on investing in minority stakes in the greenfield and brownfield infrastructure assets in the GCC region. Bunyah is currently in the exit phase of its portfolio investments.

About KIC

KIC is the international business arm of Kyushu Electric Power Company (“Kyushu Electric”), one of the largest regional utility companies in Japan with US$20bn revenues. Kyushu Electric supplies power and gas to customers mainly in the Kyushu region. Kyushu Electric has almost 70 years of corporate history and, with its subsidiaries and affiliated companies, (“Kyuden Group”), owns and operates generation, transmission and distribution facilities. KIC owns interests in multiple Independent Power Producer assets overseas, including the Taweelah B IWPP project in the United Arab Emirates. Following the acquisition of its stake in Al Dur, Kyuden Group has accumulated equity ownership of 2,675 MW in electricity generation projects outside of Japan. www.kyuden-intl.co.jp/en/

About BDA Partners

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with nearly 25 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets. www.bdapartners.com