ACWA Power announced in a statement regarding the financial close for the 1500 MW Sudair Solar PV plant, a key project under the Public Investment Fund (PIF) renewable energy program.
Earlier, during April 2021, ACWA Power led consortium signed power purchase agreement with the Saudi Power Procurement Company. (read more)
ACWA Power also announced that SAPCO, a fully owned company of Aramco, have joined the consortium with ACWA Power and Badeel, a company fully owned by PIF.
The financing group includes Mizuho Bank, Ltd., 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 equity bridge facilities are provided by Bank Al Bilad, Saudi British Bank and SMBC International Plc.
The financing for the project is based on the principles of limited recourse project financing, with the senior debt structured as a soft mini perm facility with a tenor of 28 years and both conventional as well as Islamic tranches.
The financing structure also features a set of equity bridge facilities provided by local and international banks supporting the sponsor group’s equity investment in the project.
With an investment value of SAR 3.4 billion, Sudair Solar PV project, which is located at 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.
The Project will utilize 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.
ACWA Power – in which PIF holds a 50% stake – and Badeel will each own 35% in the special purpose vehicle “Sudair One Renewable Energy Company”, which was incorporated for the project; with SAPCO holding a 30% stake.
Aramco’s investment in the Sudair Project is its first participation with PIF in its renewable energy program; reflecting the company’s efforts to advancing sustainable energy solutions within its operations and Saudi Arabia, where a variety of low-carbon energy solutions are being deployed.
The EPC agreement for the construction of the Sudair Solar PV was signed with Larsen & Toubro in April 2021. (read more)
The first phase of the project is expected to begin producing electricity during the second half of 2022, contributing towards the Saudi Green Initiative, statement said.
