Financial Closure For 300 MW Sakaka Project

ACWA Power & AlGihaz Holding Company Consortium Achieves Financial Closure Of SAR 1.2 Billion ($320 Million) For 300 MW Sakaka Solar Power Plant In Saudi Arabia; Mahindra Susten & Chint To Provide EPC Services
12:52 AM (Beijing Time) - 17. November 2018
Picture5

ACWA Power won the 300 MW PV project in February 2018 with a winning tariff of SAR 0.08782 ($0.0234) per kWh from Saudi Arabia’s Renewable Energy Projects Development Office (REPDO). Having secured financing, ACWA expects the project to enter commercial operations by the end of 2019. (Source: ACWA Power)

Key Takeaways

  • ACWA Power has announced financial closure of SAR 1.2 billion ($320 million) for the 300 MW Sakaka solar project it won in Saudi Arabia
  • The money was sourced as limited recourse ring fenced project financing with the entire debt fully underwritten by Natixis as Initial Mandated Lead Arranger and Bookrunner; Arab National Bank provided an equity bridge loan for the transaction
  • The consortium of ACWA Power and AlGihaz have set up Sakaka Solar Energy Company to develop the project
  • Mahindra Susten and Chint will provide EPC services for the project, which is planned to be commissioned by the end of 2019; Diaa Sakaka Operation and Maintenance Company will offer O&M services

Saudi Arabian energy company ACWA Power has secured financing for the 300 MW Sakaka Solar Power Plant it is developing in a consortium with AlGihaz Holding Company, a local contractor and investor. The company won the 300 MW project in February 2018 offering a winning tariff of 0.08782 ($0.0234) per kWh; it was selected by Saudi Arabia’s Renewable Energy Projects Development Office (REPDO) (see ACWA Power Wins 300 MW Saudi PV Tender).

The two companies have managed to get SAR 1.2 billion ($320 million) in financing for the Sakaka PV IPP, which ACWA Power says is the first ever utility scale renewable energy project to be developed in the country under REPDO.

The 300 MW project will be developed by a new company called Sakaka Solar Energy Company (SSEC), in which ACWA Power Holding has a 70% share and AlGihaz holds 30% through its subsidiary AlGihaz Renewable Energy Company.

ACWA Power informed the transaction is financed through limited recourse ring fenced project financing with the entire debt fully underwritten by Natixis as Initial Mandated Lead Arranger and Bookrunner. In addition, Arab National Bank provided an equity bridge loan for the transaction.

A consortium of India’s Mahindra Susten and China’s Chint will provide EPC services for the project; Diaa Sakaka Operation and Maintenance Company will offer O&M services. The project is expected to enter commercial operations by the end of 2019.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

Write, follow the author.
Email

Anu Bhambhani