Saudi Arabia's ACWA Power completed all financing agreements of the 900MW fifth phase of Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
The Dubai Electricity and Water Authority (DEWA) owns 60% of Shuaa Energy 3 project; the fifth phase of the solar park, while ACWA-Gulf Investment Corporation (GIC) consortium held the remaining stake.
The project includes the construction of the 900MW solar PV plant by using bifacial panels; with tracking technology of $564mn at one of the world's lowest costs of electricity of $1.6953 cents per kWh.
Limited recourse project funded the project financing with the senior debt granted by a number of international, regional, and local banks; along with a project recourse mezzanine tranche committed by a regional bank, structured as a c. 27-year soft mini perm financing with both conventional and Islamic tranches.
Commenting on the announcement, Paddy Padmanathan, President and CEO of ACWA Power, said, "Securing this amount of long tenor project financing for Shuaa Energy 3 PSC even as COVID 19 pandemic continues to cause social and economic disruption to the entire world illustrates the combined capabilities and trusted partnership between ACWA Power as well as DEWA."
"We are delighted to have achieved this significant milestone," he also added.
For his part, Rajit Nanda, Chief Investment Officer of ACWA Power said: "Project financing of this magnitude; successfully raised from nine project finance lenders; in the midst of a global pandemic, is the ultimate testament to DEWA's credibility; as a counterparty and the success of their IPP programme. Besides, ACWA Power's focus and proven ability to deliver power and desalinated water reliably and responsibly at low cost."