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Saudi-based global developer and operator of power and water plants ACWA Power announced on Sunday the financial close for the 1,500-megawatt Sudair Solar plant, a key project under the Public Investment Fund (PIF) renewable energy programme.
The 3.4 billion Saudi riyal ($906.5 million) solar PV power project, located in Sudair Industrial City, is set to become one of the largest single-contracted solar PV plants in the world and the largest of its kind in Saudi Arabia.
ACWA Power said in a press statement that the limited recourse project financing comprised of senior debt structured as a soft mini perm facility with a tenor of 28 years, and conventional as well as Islamic tranches. The financing group includes Mizuho Bank, Riyad Bank, Korea Development Bank, Arab Petroleum Investments Corporation (APICORP), Al Rajhi Banking & Investment Corporation, and Standard Chartered Bank as senior lenders and Mandated Lead Arrangers.
The statement said the financing structure also features a set of equity bridge facilities provided by Bank Al Bilad, Saudi British Bank and SMBC International, supporting the sponsor group’s equity investment in the project.
While the statement didn't disclose details the financing, a $616.6 million loan was closed for the project in June 2021, according to Refinitiv's Infrastructure 360 database.
The first phase of the project is expected to begin producing electricity during the second half of 2022, ACWA Power added.
Using bi-facial modules with tracking technology, the plant is set to deliver highly efficient performance and be capable of powering 185,000 homes, while offsetting nearly 2.9 million tons of emissions per year, the ACWA Power statement said.
In April, Zawya Projects had reported that India's Larsen & Toubro had been awarded the engineering, procurement and construction contract for the project.
SAPCO, a fully owned company of Aramco, has joined the project's existing developer consortium of ACWA Power and the PIF-owned Badeel, marking the oil giant's first participation in PIF's renewable energy programme.
PIF’s renewable energy programme aims to deliver 70 percent of Saudi Arabia's renewable energy goals under its National Renewable Energy Programme (NREP).
SDC Deal Number: 3886028158
(Writing by SA Kader; Editing by Anoop Menon)
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