Multilaterals and IFI Financing

Obeidat Law has on many occasions been involved in advising multilaterals and International Financial Institutions such as International Finance Corporation, European Bank for Reconstruction and Development and the Islamic Development Bank on financings and/or equity investments in Jordan, or in acting for and representing companies that are recipients of such financings and investments.

  • Obeidat Law was engaged by International Finance Corporation in 2019 to advise it on certain legal aspects related to sub-sovereign borrowings by some of the Jordanian public entities such as municipalities and similar institutions;
  • During 2018 and 2019, Obeidat Law advised multilateral lenders led by International Finance Corporation in relation to the financing of the 200MW Baynouna Photovoltaic Solar Power project located at Tilal Al Ruman, Jordan. We were involved in the preparation and negotiation of the local law security documents and in attending to Jordanian law related issues as they may apply to the Project.  We were also involved in confirming satisfaction of the CPs;
  • In 2015 and 2016, the firm, in conjunction with international counsel, advised the International Finance Corporation and other lenders on the financing of seven (7) separate projects in the solar energy sector (known as the Seven Sisters’ Project). The projects are spread from the north to the south of Jordan with a concentration in the Governorate of Ma’an, 220 kilometers from the capital Amman.  Our tasks include participating in the due diligence effort on all seven borrowers, advising the clients on the optimal structure of the Jordanian security documents, and on all Jordanian-related legal issues pertaining to the loan documents;
  • Obeidat Law advised the Jordan India Fertilizer Company Ltd. and its two major sponsors, the Jordan Phosphate Mines Company PLC and the Indian Farmers Fertilizers’ Cooperative Ltd., in relation to a $335 million facility to be provided by IFC and EIB for the building of JIFCO’s fertilizer project in the southern part of Jordan, the cost of which stands at $650 million;
  • In 2011, the firm acted for International Finance Corporation in relation to the preparation and review of the Jordanian Security Documents that relate to an offshore loan granted to a foreign investor in a Jordanian public transportation company. Our role was to prepare the documentation and ensure that the local security over the shares of the public transportation company was perfected in favor of International Finance Corporation;
  • The firm advised the sponsors of the Disi Water Conveyance System project, which was awarded by the GOJ in 2009 to Gama Enerji A.S. (Turkey) on a BOT basis.  The firm’s advice to the sponsors started with the bidding phase and continued on throughout the award phase, where we advised the sponsors on various aspects of Jordanian law, preliminary meetings with international lenders and in the long-winded negotiations with the GOJ.  The firm was also instrumental subsequently in advising the project company, Disi Water Company PSC, in coordination with its international counsel, on the financing aspects of the project.  The financing package for the project of $475 million was arranged by the European Investment Bank, the US Overseas Private Investment Corporation and the French government’s PROPARCO, with an additional GOJ grant of around $300 million that aims at reducing the ultimate cost of water that will be sold to the consumers;
  • Obeidat Law advised International Finance Corporation on its acquisition of a minority stake in Capital Bank of Jordan, a rising local bank, for an approximate value of $35,000,000.  Our role included conducting a brief due diligence exercise on the target, advising the client on issues of Jordanian law under the transaction documents and on the negotiation and successful conclusion of the transaction;
  • During 2007, Obeidat Law advised International Finance Corporation and the Islamic Development Bank in relation to a multi-million United States Dollar financing of the Queen Alia International Airport expansion and operation project.  The project, which is part of the Government of Jordan’s new trend of awarding PPP projects to international bidders, was awarded by the GOJ to an international consortium on a BTO basis.  Our role involved advising the lenders on the various aspects of Jordanian law, assisting the financiers’ international counsel in drafting the local security documentation for the financing, and in rendering legal opinions on Jordanian law as well as coordinating with the Government of Jordan.