MENA UPDATE

M&A:

  • Abu Dhabi-based Mubadala Development Company and the Investment Corporation of Dubai have agreed to establish a joint venture via merger, creating Emirates Global Aluminum, the world’s fifth largest aluminum company. (June)
  • Kuwait-based United Gulf Bank and Burgan Bank, subsidiaries of Kuwait Projects Co (KIPCO), acquired a combined 37% stake in Malta-based Fimbank from Kuwait-based Massaleh Investments K.S.C.C. and Kuwaiti Interests for Development Holding Co. The financial terms of the transaction were not disclosed. (June)
  • Dubai-based Mena Infrastructure Fund L.P. acquired a 20% stake in Oman-based Sohar Power Company SAOG from Oman-based WJ Towell & Co LLC, Oman-based Zubair Corporation LLC, and a subsidiary of France-based GDF Suez. Sohar Power owns a 585 MW power plant and a 150,000 cubic meter water desalination plant in Oman. The financial terms of the transaction were not disclosed. (June)
  • Oman-based Al Fajar Al Alamia Co SAOG acquired a 99% stake in Oman-based Al Musdaq Modern Trading LLC for approximately $7 million. (May)
  • Bahrain-based International Investment Bank acquired a 10% stake in UK-based Leeds United Football Club from Dubai-based GFH Capital. The financial terms of the transaction were not disclosed. (May)
  • Dubai-based Anichem FZC, part of the Al Nahda International Group, acquired 100% of G.D. Portbury Ltd. (Sasol Gulf) from Sasol Olefins & Surfactants. The financial terms of the transaction were not disclosed. (May)
  • Bahrain-based Batelco Group acquired various companies from Cable & Wireless Communications (CWC) for $570 million. Batelco also acquired a 25% stake in Compagnie Monégasque de Communications, which owns CWC’s 55% interest in Monaco Telecom. (April)
  • Saudi-based Savola Group acquired a 10% stake in Savola Foods Company and an 18.6% stake in Azizia Panda United Company from Al-Muhaidib Holding Company for approximately $361 million. (April)        

Projects:

  • Saudi-based Sadara Chemical Co, a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and the Dow Chemical Company, secured a $10.5 billion syndicated loan from several export credit agencies, commercial banks and the Saudi Arabia Public Investment Fund to finance the construction of a petrochemical complex in Jubail Industrial City II. (June)
  • South Korea-based Daewoo Shipbuilding & Marine Engineering won an approximately $800 million contract to build several oil production facilities in the Upper Zakum oil fields in the UAE. Construction is scheduled to be finished by 2017. (May)
  • South Korea-based Daelim won an approximately $500 million contract from the Kuwait National Petroleum Co (KNPC) to repair and expand a sulphur processing facility located in Mina Al-Ahmadi, Kuwait. The project is scheduled to be completed in 36 months. (May)
  • Siemens, a Germany-based engineering and technology company, signed procurement and construction agreements worth €200 million with the Saudi Electricity Company to supply gas turbines generating 388 MW and to establish a substation in the region of Al-Kharj. (May)
  • Oman Oil Company Exploration and Production awarded UAE-based National Petroleum Construction Corporation a $40 million engineering, procurement and construction contract for two off-shore pipelines near Musandam, Oman. Construction is expected to be complete by January 2014. (May)
  • A joint venture between Saudi Basic Industries Corporation (SABIC) and Japan-based Mitsubishi Rayon Company will begin accepting engineering, procurement and construction tenders for two petrochemical plants in Jubail Industrial City, Saudi Arabia. The plants will produce a combined total of 290,000 tons per year of methacrylates. (May)
  • US-based APR Energy won a contract from the Oman Power and Water Procurement Co. to build a 32 MW diesel power plant located in Oman. The facility is projected to be operational by the second quarter of 2013. (May)
  • Jordan and Iraq have agreed to build an oil pipeline from Basra to the Jordanian port of Aqaba. The $18 billion pipeline will carry nearly a million barrels of oil a day and roughly 258 million cubic meters of gas. Operation is expected by 2017. (April)
  • France-based engineering company Alstom won a €750 million contract to supply equipment for a 3,100 MW steam-powered power plant located in Saudi Arabia. Operation is expected in 2016. (April)
  • India-based technology, engineering, construction and manufacturing company Larsen & Toubro signed an approximately $257 million construction agreement with the Abu Dhabi Airports Company to build the Midfield Terminal Complex, an expansion of the Abu Dhabi International Airport. Construction is expected to be finished by 2017. (April)
  • Lebanon announced a tender to build an offshore Floating Storage Regasification Unit for Liquified Natural Gas. The Lebanese Ministry of Water and Energy expects to complete the tender by October 2013. (April)        

Capital Markets:

  • Saudi-based multilateral institution Islamic Development Bank issued $1 billion in five-year sukuk with a coupon rate of 1.535%. (May)
  • Saudi-based Sadara Chemical Co, a joint venture between Saudi Arabian Oil Company (Saudi Aramco) and the Dow Chemical Company, issued in a private placement $1.4 billion in sixteen-year bonds priced at 95 bps over the six-month Saudi interbank offered rate. The proceeds will be used to fund the construction of a petrochemical complex in Jubail Industrial City II. (April)
  • Saudi-based SBG Sukuk Limited, a special purpose vehicle of the Saudi Binladin Group, issued $347 million in sukuk al-ijara in a private placement. The sukuk are due in 2015 and are priced at 170 bps over the three-month Saudi interbank offered rate. (April)
  • Sharjah Islamic Bank PJSC issued $500 million in five-year sukuk at a coupon rate of 2.95%. (April)       

Banking & Finance:

  • Investment Corporation of Dubai secured a $2.55 billion syndicated loan to refinance an existing $6 billion facility. The loan includes both Islamic and conventional tranches. The financial terms of the transaction were not disclosed. (June)
  • UAE-based healthcare provider NMC Health PLC secured a $225 million syndicated loan from several regional and international banks. The loan will consolidate several outstanding facilities and has a maturity of five years. The financial terms of the transaction were not disclosed. (June)
  • Telecom operator Zain Saudi secured a syndicated murabaha facility of $600 million from Arab National Bank, Banque Saudi Fransi, Gulf International Bank and Samba Financial Group. The loan will refinance an existing loan and has a maturity of three years. The financial terms of the transaction were not disclosed. (June)
  • The Nigerian affiliate of UAE-based telecom Etisalat secured a syndicated loan of $1.2 billion from 13 Nigerian banks. The loan will refinance an existing loan and expand the telecom’s network. The financial terms of the transaction were not disclosed. (May)
  • UAE-based airline Air Arabia secured a loan of $350 million from Qatar National Bank and Commercial Bank International. The loan will finance the purchase of 10 new Airbus A320 aircraft. The financial terms of the transaction were not disclosed. (May)
  • Abu Dhabi state investment fund Mubadala secured a $2 billion loan from 19 international lenders to refinance an existing $2.5 billion loan secured in 2010. The loan has a maturity of 3 years and an interest rate of 45 bps over LIBOR. (April)
  • Qatar-based telecom Ooredoo secured a syndicated loan of $1 billion from 14 lenders to finance working capital and to refinance an existing $1.25 billion loan. The revolving credit facility has a maturity of four years. The financial terms of the transaction were not disclosed. (April)
  • Kuwait-based Al Wafir Marketing Services Company KSCC secured a loan of $50 million from Kuwait International Bank KSC. The loan has a maturity of five years. The financial terms of the transaction were not disclosed. (April)
  • Dubai-based GEMS Education secured a syndicated loan of $545 million from Abu Dhabi Islamic Bank, Mashreq Bank, Dubai Islamic Bank, Noor Islamic Bank and United Arab Bank to refinance investments in existing schools and finance new schools in the United Arab Emirates and the region. The loan is composed of Islamic and conventional tranches and has a maturity of six years. The financial terms of the transaction were not disclosed. (April)

Funds:

  • The European Investment Bank and the European Bank for Reconstruction and Development each committed €20 million to the Capital North Africa Venture Fund II, which is managed by Morocco-based private equity firm Capital Invest. The fund will focus on investing in small and medium size businesses in Morocco. (June)
  • Qatar Holding, Qatar Petroleum International (QPI) and Qatar Electricity and Water Co (QEWC) jointly launched a $1 billion fund to invest internationally in power generation. The joint venture is called Nebras Power and is 60% owned by QEWC, 20% by QPI and 20% by Qatar Holding. (May)
  • The International Finance Corporation invested $20 million in Abu Dhabi-based Gulf Capital Credit Opportunities, a regional credit fund. The investment brings the total investment in the Gulf Capital Credit Opportunities Fund to $215 million. (June)        

TURKEY UPDATE

M&A:

  • Ciner Holding acquired the Turkish television channel Show TV from Turkey’s Savings Deposit Insurance Fund, which had previously taken it over from the Çukurova Group, for approximately $205 million. (June)
  • Aksa Enerji acquired a 93% stake in the energy company Kapıdağ Rüzgar Enerjisi Santralı Elektrik Üretim from Kazancı Holding for approximately $67 million. (June)
  • Meditera Capital Partners I LP, through a subsidiary, acquired a 34.6% stake in Turkish software company Logo Yazılım from Logo Yatırım Holding for approximately $25 million. (June)
  • Seramiksan Turgutlu Seramik acquired a 50% stake in Italian ceramics company Rondine S.p.A. from Italian private equity firm Progressio SGR S.p.A. The financial terms of the transaction were not disclosed. (June)
  • NBK Capital Equity Partners Fund I sold its entire 30% equity stake in Dünya Göz, a Turkish ophthalmology hospital chain, to the founding shareholder. The financial terms of the transaction were not disclosed. (May)
  • France-based Danone acquired a 50.1% interest in Turkish bottled water company Sırmagrup İçecek Sanayi. The financial terms of the transaction were not disclosed. (May)
  • U.K.-based Bancroft Private Equity made a minority investment in TatilSepeti.com, a Turkish travel portal. The financial terms of the transaction were not disclosed. (May)
  • Turkish Airlines acquired 100% of the shares of MNG Teknik Uçak Bakım Hizmetleri from MNG Holding. The financial terms of the transaction were not disclosed. (May)
  • Turkish private equity firm Gözde Girişim Sermayesi Yatırım Ortaklığı, a subsidiary of Yıldız Holding, acquired a 48.8% stake in Azmüsebat Çelik Sanayi for $24.4 million. (May)
  • Swiss engineering company Georg Fischer AG acquired a 90% stake in Turkish plastic pipes producer Hakan Plastik Boru ve Profil from individual shareholders. The financial terms of the transaction were not disclosed. (May)
  • The State Oil Company of Azerbaijan Republic acquired a 50% stake in Star Medya Ajans, Star Medya Yayıncılık, Star Matbaacılık and Dinamik Radyo Televizyon. The financial terms of the transaction were not disclosed. (April)      

Privatizations:

  • Turkey’s Privatization Administration finalized the transfer of 100% shares in Gediz Elektrik Dağıtım to a joint venture owned by the Turkish companies Elsan, Tümaş and Karacay, which acquired the shares for approximately $1.2 billion. (June)
  • Turkey’s Privatization Administration finalized the transfer of 100% shares in Başkent Doğalgaz Dağıtım to Torunlar Enerji, which acquired the shares for approximately $1.2 billion. (June)
  • Turkey’s Privatization Administration finalized the transfer of 100% shares in Dicle Elektrik Dağıtım to a joint venture owned by the Turkish companies İşkaya and Doğu, which acquired the shares for approximately $387 million. (June)
  • Turkey’s Privatization Administration finalized the transfer of 100% shares in Aras Elektrik Perakende Satış to a joint venture owned by the Turkish companies Çalık and Kiler, which acquired the shares for approximately $128 million. (June)
  • Turkey’s Privatization Administration finalized the transfer of 100% shares in Boğaziçi Elektrik Dağıtım and Akdeniz Elektrik Dağıtım to Cengiz-Limak-Kolin joint venture, which acquired the shares for approximately $1.9 billion and $546 million, respectively. (May)
  • Turkey’s Privatization Administration launched the tender for the transfer of 30-year operating rights of the Karaköy Galataport cruise port. Doğuş Holding placed the highest bid of $702 million. (May)
  • Turkey’s General Directorate of Coal Enterprises launched a royalty tender for the establishment and 30-year operating rights of a lignite-powered thermal power plant in the Karlıova field. Aksa Enerji Üretim placed the highest royalty bid of 3.20 kuruş/ kWh). (May)        

Projects:

  • Anel Elektrik was awarded a contract by TAV-CCC-ArabTec consortium and the Abu Dhabi Airports Company PSJC to perform electrical works at a new terminal building of the International Abu Dhabi Airport. The project is expected to be completed in 49 months and to be worth approximately $257 million. (June)
  • Turkish Limak Group signed an agreement with the Kurdistan Regional Government to design and construct the 3,590-meter long Gali Zakho highway tunnel connecting the cities of Duhok and Zakho. The project is expected to be completed in 30 months and to cost $136 million. (June)
  • A consortium of Turkish construction companies Limak-Cengiz-Mapa-Kolin-Kalyon won the bid to build, and operate for 25 years, Istanbul’s third airport. The airport will have six runways and will serve 150 million passengers per year. The airport is expected to be operational by the end of 2018. The consortium made a €22.15 billion offer, the highest in Turkey’s history. (May)
  • Turkey and Japan signed an agreement to build a nuclear power plant in the Turkish city of Sinop. A consortium including Japan-based Mitsubishi and Itochu and the French energy company GDF-Suez will build the plant. The first unit is expected to come online in 2023, and the plant is expected to be fully operational by 2028. The project is worth $22 billion. (May)
  • TAV-Tepe Akfen Yatırım won the design and construction tender for the King Khaled Airport Terminal 5 in Riyadh, Saudi Arabia. The project consists of the construction of a passenger terminal and various additional facilities. It is expected to be completed within 18 months and to cost $400 million. (May)
  • Borusan Mannesmann Boru Sanayi, a manufacturer of steel pipes, began construction of a steel production plant in Baytown, Texas, U.S.A. Construction is expected to cost $148 million, and the plant is expected to be operational by 2015. (April)
  • Anel Elektrik signed a subcontractor agreement with Koray İnşaat to undertake mechanical and electromechanical works worth $56 million at the Tuzla business center project that Koray İnşaat is building for Is Real Estate Investment Trust. (April)       

Capital Markets:

  • Yapı ve Kredi Bankası issued approximately $549 million aggregate principal amount of bank bills with maturities between 122 and 360 days and interest rates between 5.0% and 7.4% per annum. (June-April)
  • Garanti Bankası issued approximately $898 million aggregate principal amount of bank bills and bonds with maturities between 91 and 369 days and interest rates between 4.5% and 7.0% per annum. (May)
  • Vakıflar Bankası issued approximately $797 million aggregate principal amount of bank bills and bonds with maturities between 168 and 364 days and interest rates between 5.0% and 8.2% per annum. (May)
  • Panora Gayrimenkul Yatırım Ortaklığı completed a $55.8 million public offering on the Istanbul Stock Exchange of 25% of its shares. (May)
  • Türkiye İş Bankası issued approximately $1.5 billion aggregate principal amount of bank bills and bonds with maturities between 89 and 404 days and interest rates between 4.9% and 8.7% per annum. (May, April)
  • Ziraat Bankası issued approximately $835 million aggregate principal amount of bank bills with maturities between 84 and 179 days and interest rates between 5.0% and 6.4% per annum. (May, April)
  • Denizbank issued approximately $341 million aggregate principal amount of bank bills and bonds with maturities between 124 and 1,099 days and interest rates between 4.9% and 7.3% per annum. (May, April)
  • Finansbank issued approximately $607 million aggregate principal amount of bank bills and bonds with maturities between 163 and 370 days and interest rates between 7% and 7.8% per annum. (April)
  • Pegasus Airlines completed a $361 million public offering on the Istanbul Stock Exchange of 35% of its shares. (April)
  • Başkent Elektrik Dağıtım issued approximately $197 million aggregate principal amount of bonds with a maturity of 1,092 days and an interest rate of 7.7% per annum. (April)
  • Royal Halı İplik completed a $42.6 million public offering on the Istanbul Stock Exchange of 29% of its shares. (April)       

Banking & Finance:

  • Alternatifbank secured a syndicated loan in two tranches of €137 and $162 from a consortium of 20 domestic and international lenders. Each loan has a maturity of 366 days and an interest rate of Libor/Euribor + 1.5% per annum. (June)
  • Türk Telekomünikasyon secured a $300 million loan from the Emirates NBD Bank PJSC. The loan has a maturity of 3.5 years and an interest rate of Libor + 2.68% per annum. (June)
  • Denizbank secured a $300 million subordinated loan from Russia-based Sberbank. The loan has a maturity of 10 years and an interest rate of 6.1% per annum. (June)
  • The European Bank for Reconstruction and Development (EBRD) has agreed to provide a long-term loan of €9.5 million to TurkNet, an independent provider of broadband internet and fixed telephony services in Turkey. The loan will support the borrower’s capital expenditure program. (May)
  • Ziraat Bankası secured a syndicated loan in two tranches of $228 million and €322 million. The loan has a maturity of one year and an interest rate of Libor/Euribor + 1% per annum. This is the first syndicated loan that the bank has secured, and proceeds will be used to finance foreign transactions. (April)
  • Türk Telekomünikasyon secured a $150 million loan from BNP Paribas, ING, and JP Morgan to finance purchases by it and its subsidiaries from Ericsson. Sweden’s Eximbank EKN guaranteed the loan, which has a maturity of 9 years and an interest rate of Libor + 0.795% per annum. (April)