The Japan Bank for International Cooperation (JBIC) announced in a statement that it has signed a financing agreement for the Rabigh Solar PV Plant of capacity 300MW located in western region of Saudi Arabia.
The agreement was signed with special purpose vehicle (SPV) company, South Rabigh Renewable Energy Company (SRREC) of the Kingdom of Saudi Arabia (Saudi Arabia), in which Marubeni Corporation holds an equity stake.
As per the statement, JBIC will provide project financing amounting to up to approximately USD78 million (JBIC portion).
The loan is co-financed with Mizuho Bank, Ltd and Al Rajhi Banking & Investment Corporation of Saudi Arabia, and the total co-financing amount is approximately USD157 million.
Al Rajhi Banking & Investment Corporation plans to provide the funds based on Islamic finance.
In this project, SRREC, which was established by Marubeni Corporation together with Al Jomaih Energy & Water Company of Saudi Arabia, will build, own and operate a 300MW solar PV plant in Rabigh, located approximately 800km to the west of Riyadh, the capital of Saudi Arabia.
The electricity produced by the plant will be sold to Saudi Power Procurement Company over 25 years.
This is the first loan by JBIC for an independent power producer (IPP) project as well as for a renewable energy project in Saudi Arabia, statement said.
Earlier, during April 2020, REPDO shortlisted the Marubeni consortium for Rabigh Solar PV Plant. (read more)
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