HYFLUX LIMITED Company Registration No. 200002722Z (Incorporated by jrr15832

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									HYFLUX LIMITED
Company Registration No.: 200002722Z
(Incorporated in the Republic of Singapore)

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FINANCIAL CLOSE FOR WORLD’S LARGEST REVERSE OSMOSIS DESALINATION
PLANT OF 500,000M³/DAY IN MAGTAA, ORAN, WESTERN ALGERIA (“PROJECT”)

Further to the announcement dated 17 December 2008, Hyflux Limited (“Hyflux”) is pleased to announce
that financial close in accordance with the terms of the non-recourse project financing facility agreement
executed with Banque Nationale d’Algerie ("BNA") has been completed today.

BNA, the sole lender for the non-recourse project financing facility will make available a loan of
approximately USD350 million to the Project company, Tahlyat Myah Magtaa SpA ("TMM"). The debt to
equity ratio is 70:30.

All the conditions precedents under the non-recourse project financing facility agreement, including the
issue of advance payment and performance bonds to the value of approximately USD146 million, have
been satisfied. The mandated lead arrangers for this approximately USD146 million syndicated facility are,
BNP Paribas, Arab Banking Corporation and Calyon.

TMM will now proceed to drawdown in accordance with the terms of the non-recourse project financing
facility with BNA.

The developer of the Project with an approximate value of USD468 million, is TMM; a joint venture
company between Hyflux’s wholly owned subsidiary, MenaSpring Utility (S) Pte Limited (“MenaSpring”)
and Algerian Energy Company (“AEC”).

Wholly owned subsidiaries of Hyflux will be responsible for completing the engineering, procurement and
construction (“EPC”) works for the Project at a total value of approximately USD443 million. The EPC
works include the design, install, erect, build, complete, test and commission of the Project, and is
expected to be completed within 28 months’ time. Hyflux’s award winning Kristal ultra filtration
membranes will be used in the Project.

Upon completion of construction, the Operations and Maintenance (“O&M”) work for the Project will be
undertaken by Hyflux’s wholly owned subsidiary, Hyflux Operation & Maintenance Algérie, for a term of
25 years. The O&M fees will contribute towards the long term recurring income of Hyflux.

Following financial close, MenaSpring will divest 4% of its shareholding in TMM to AEC, who will at the
same time divest 10% of its shareholding to the Algerian state-owned national public water entity,
L’Algerienne Des Eaux (“ADE”). As a result, MenaSpring will hold 47% of the issued shares in TMM,
while AEC and ADE shall become the remaining 43% and 10% shareholders in TMM respectively.

Commenting on the latest development, Hyflux’s Group CEO and President, Ms. Olivia Lum
said: “Achieving financial close for the world's largest seawater desalination plant is a significant
milestone for Hyflux. Not only is this a testimony of our capabilities, this landmark project is also an
affirmation of our beliefs in pushing for continued technology advancement and applications. I am also
very pleased that we can build on an already strong relationship with our partners, AEC and ADE”.

BY ORDER OF THE BOARD
HYFLUX LIMITED
Sam Ong, Deputy CEO, CFO, SUBMITTED ON 18 March 2009 TO SGX-ST

								
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