IFC arranges US$71 million financing for 50 MW wind project in Jordan

The International Finance Corporation (IFC), a member of the World Bank Group, is providing a US$71 million financing package to fund the construction of the new Daehan Wind Power Plant in Jordan. The 51 MW plant will be built in the southern governorate of Tafila.

The US$103 million Daehan project is being developed by two Korean sponsors, Korea Southern Power Co. (KOSPO) and Daelim Energy. The wind farm will generate about 153 GWh annually for sale to the National Electric Power Company under a 20-year Power Purchase Agreement (PPA). 

IFC is providing a US$10 million loan from its own account and also acted as lead arranger, mobilizing parallel loans of US$26 million from the Managed Co-Lending Portfolio Program (MCPP), US$27.7 million from the Standard Chartered Bank, and US$8 million from Korea’s Shinhan Bank.

IFC also structured an equity bridge loan of US$26 million, its first in project financing, and will provide interest rate swaps for half the financing package. 

Daehan Wind is the first engagement in Jordan’s renewable sector by KOSPO, Daelim Energy, and Shinhan Bank. It is estimated that the wind farm will serve around 27,000 customers annually and avoiding greenhouse gas emissions of approximately 112,000 tons of CO₂ per annum.