ACWA Power Announces Financial Close for 900 MW PhV of MBR Solar Park
- ACWA Power has actually completed the signing of all financing agreements of the 900 MW fifth stage of the Mohammed bin Rashid Al Maktoum (MBR) Solar Park in Dubai.
ACWA Power, a leading Saudi Arabian developer, financier and driver of power generation plants, has announced that it has actually finished the finalizing of all financing contracts of the 900 MW solar PV project, Shuaa Energy 3 PSC, which is the fifth phase of the Mohammed container Rashid Al Maktoum (MBR) Solar Park in Dubai.
Shuaa Energy 3 PSC is the unique purpose vehicle integrated for the project, with 60 percent possession by the Dubai Electricity & Water Authority (DEWA) as well as the equilibrium split between ACWA Power and also Gulf Investment Corporation (GIC).
The project entails the construction of a modern 900MW solar PV plant, making use of bi-facial panels with tracking innovation at a resources cost of c. $564 million, and has actually been the emphasis of considerable international interest, having shown one of the most affordable levelised price of electrical power on the planet of USD cents 1.6953 per kWh.
The funding for the project is based on the concepts of minimal choice project funding with the senior financial obligation provided by a variety of global, local and regional financial institutions in addition to a project option mezzanine tranche devoted by a regional bank, structured as a c. 27-year soft mini-perm financing with both conventional as well as Islamic tranches. On top of that, the financing structure featured a collection of equity swing loan supplied by neighborhood banks and additionally by DEWA.
"Securing this amount of long tone project funding for Shuaa Energy 3 PSC even as COVID 19 pandemic continues to create social and also financial disturbance to the entire world highlights the consolidated capacities and relied on partnership in between ACWA Power and DEWA. We are delighted to have achieved this significant landmark, which mirrors confidence of the financial neighborhood in this partnership, and the function and also famous condition of the 5th phase of Mohammed bin Rashid Al Maktoum Solar Park in supplying Dubai's Clean Energy Strategy 2050," stated Paddy Padmanathan, President & CEO of ACWA Power.
The financing team to the Project included Abu Dhabi Islamic Bank, Arab Petroleum Investment Corporation, Industrial as well as Commercial Bank of China, Emirates NBD Bank, Natixis, SAMBA Financial Group, Standard Chartered Bank as well as Warba Bank. In addition, a project recourse mezzanine tranche was supplied by Commercial Bank International and equity bridge centers offered by Commercial Bank of Dubai, Emirates NBD Bank and Mashreq bank.
"Project financing of this size having been effectively elevated from 9 project money lending institutions in the midst of a worldwide pandemic, is the ultimate testament to DEWA's trustworthiness as a counterparty as well as the success of their IPP program, in addition to ACWA Power's emphasis and also shown capability to supply power and desalinated water accurately and also responsibly at inexpensive," claimed Rajit Nanda, Chief Investment Officer of ACWA Power.
