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Qatar Electricity Buys Stake in Jordanian Power Plant

Qatar Electricity & Water Co. is buying a 23.3% stake in Jordan’s Amman East power plant from a Bahraini infrastructure fund, Reuters reported Wednesday. QEWC bought the stake from IDB Infrastructure Fund, a $730 million private equity fund established in 2001 and managed by EMP Bahrain, a subsidiary of EMP Global. The IDB Fund’s mandate is to make investments in infrastructure projects in Islamic countries, Reuters wrote. Terms of the deal were not released.

(Reuters) – Qatar Electricity & Water Co (QEWC) has agreed to buy a 23.3 percent stake in Jordan’s Amman East power plant from a Bahraini infrastructure fund, in a move by the state-owned Qatari firm to expand its international footprint.

QEWC bought the stake from IDB Infrastructure Fund, a $730 million private equity fund established in 2001 and managed by EMP Bahrain, a subsidiary of EMP Global. The IDB Fund’s mandate is to make investments in infrastructure projects in Islamic countries.

As part of the deal, QEWC will buy IDB’s 38.9 percent interest in AES Oasis Ltd, the 60 percent owner of the holding company for AES Jordan, QEWC said in a statement.

AES Jordan PSC, a subsidiary of AES Corp and Japan’s Mitsui & Co, is the operator of the Amman East plant.

No deal value was disclosed for the transaction, which is expected to close in the first-quarter of 2012. The Amman East power plant has an installed capacity of 370 megawatts.

QEWC was advised by Royal Bank of Scotland on the transaction, while IDB Fund was advised by Rothschild on the deal. (Reporting by Dinesh Nair; Editing by Firouz Sedarat)