ACWA Power signs financing agreements for fifth phase of MBR Solar Park

Riyadh-based ACWA Power completed the signing of all financing agreements of the 900MW solar PV project, Shuaa Energy 3 PSC, the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the company said in a statement on Thursday.

Shuaa Energy 3 PSC is the special purpose vehicle incorporated for the project, with 60% ownership by the Dubai Electricity & Water Authority (DEWA) and the balance split between ACWA Power and Gulf Investment Corporation (GIC).

The project involves the construction of a 900MW solar PV plant, using bi-facial panels with tracking technology at an estimated capital cost of $564 million.

The financing for the project is based on the principles of limited recourse project financing with the senior debt provided by a number of international, regional and local banks along with a project recourse mezzanine tranche committed by a regional bank, structured as a estimated 27-year soft mini-perm financing with both conventional and Islamic tranches.

In addition, the financing structure featured a set of equity bridge loans provided by local banks and DEWA.

The financing group included SAMBA Financial Group, Abu Dhabi Islamic Bank, Arab Petroleum Investment Corporation, Industrial and Commercial Bank of China, Emirates NBD Bank, Natixis, Standard Chartered Bank and Warba Bank.

Additionally, the project recourse mezzanine tranche was provided by Commercial Bank International and equity bridge facilities provided by Commercial Bank of Dubai, Emirates NBD Bank and Mashreqbank.