Abu Dhabi closes $872m financing for mega project

Abu Dhabi Water and Electricity Authority (ADWEA) closed a $872 million (Dh3.2 billion) financing package for the world’s largest solar power plant, the utility’s top official said yesterday.

It raised $650 million in debt with the remaining $222 million raised in equity, director-general Saif Saleh Al Sayari said.

A consortium of Japan’s Marubeni Corp and China’s JinkoSolar Holding were selected this year to build and operate the 1,177 megawatt plant.

Al Sayari said that the 25-year loan is structured in a way that will allow refinancing after five years.

Bank of Tokyo Mitsubishi was the leading arranger of the loan along with three other Japanese banks — Sumitomo Mitsui Banking Corp, Mitsubishi UFJ Trust and Norinchukin Bank.

French Banks — BNP Paribas Credit Agricole, Natixis — and First Abu Dhabi Bank were also part of the deal.

The equity portion will be contributed by ADWEA and the project developers Marubeni and JinkoSolar.

The project is ADWEA’S first foray into renewable energy. Abu Dhabi aims to generate 7 per cent of its energy from renewables by 2020 with Masdar leading renewable energy projects.