Financial close for 900MW solar PV project in UAE

ACWA Power has completed the signing of all financing agreements of the 900 MW solar PV project, Shuaa Energy 3 PSC, which is the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. Shuaa Energy 3 PSC is the special purpose vehicle incorporated for the project, with 60 percent 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 900 MW solar PV plant, using bi-facial panels with tracking technology at a capital cost of US$564 million. It has one of the lowest levelised cost of electricity in the world with a rate of US$16.95 per MWh.

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 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 also by DEWA.

The financing group to the project included Abu Dhabi Islamic Bank, Arab Petroleum Investment Corporation, Industrial and Commercial Bank of China, Emirates NBD Bank, Natixis, SAMBA Financial Group, Standard Chartered Bank and Warba Bank. Additionally, a project recourse mezzanine tranche was provided by Commercial Bank International and equity bridge facilities provided by Commercial Bank of Dubai, Emirates NBD Bank and Mashreq bank.