PF Archive

SingSpring: Desal sings in syndication

01 12 2003

Singapore's desalinated water project SingSpring came to market in mid-December, and set a new record for length of tenor, with its eighteen year S$158.5 million (US$93 million) project loan, which was oversubscribed. SingSpring is controlled by Singapore based water company Hyflux Ltd, which early in 2003 won the tender to supply the Public Utility Board (PUB) with 30 million gallons of desalinated water per day via a Build Own Operate project. The plant is scheduled to commence supply of water to the state owned PUB by the second half of 2005. The project financing's arrangers comprised: DBS Bank as lead arranger, facility agent, security trustee and account bank; KBC Bank as co-lead arranger and insurance adviser; ING Bank as co-lead arranger; and Standard Chartered Bank as co-lead arranger and technical adviser bank. The syndicated senior project loan totalled S$158.5 million, or 80% of the total project cost, and there was also a S$6.5 million standby loan to fund 70% of any cost overrun. Hyflux is providing S$35 million worth of equity. The loan carries construction risk, and for the two year construction period pays 110 basis...