‘Shabah Al Kheir’ stands for a generous good morning greeting in Arabic. Actually this is what we all had wished for while anticipating the positive news on the USD872 million financing of the world’s largest solar plant owned by ADWEA.

Eventually, IPFA Project Finance Advisory’s team is delighted to warmly extend a very good morning and also announce our successful involvement in the structure of the financing on behalf of Bank of Tokyo Mitsubishi.

ADWEA, Abu Dhabi’s government-owned Water and Power Authority, finally managed to closed a AED3.2 billion (USD872 million) financing package for what will be the world’s largest solar power plant. Under the terms with the leading arranger of the loan, Bank of Tokyo Mitsubishi, a USD650 million in debt is to be financed for the build and operation of the 1,2GW plant. The remaining USD222 million is to be raised in equity.

The IPFA Project Finance Advisory team was led by the Executive VP and Managing Partner Gordon Batman (Head of the Renewables group) and Yiorgos Andrianopoulos (Equity Partner and Senior Advisor to Infra, Energy & Shipping group), who were assisted by associates Aniza Dellializi, Luc Boreau, Thiery Daberleau and Mark Schmidt.

Gordon Batman, Managing Partner, IPFA Project Finance Advisory says: “The start of 2017 has been a very busy time in the solar industry, particularly in the Middle East.

We have been retained by global players who are now discovering the opportunities in the GCC and worked with our regional partners to the successful closure of this deal – so we are delighted to have been able to advise on such large solar deals to date.”

The 25-yeal loan in debt has been structured in such a way that will allow refinancing over the course of the next five years. The equity portion will be contributed by ADWEA and the project consortium. Along with the leading arranger of the loan three other Japanese banks have also been part of the deal – Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Norinchukin Bank while French Banks – BNP Paribas Credit Agricole, Natixis – and First Abu Dhabi Bank have been involved as well.

The project is ADWEA’S first foray into renewable energy. Abu Dhabi aims to generate 7 percent of its energy from renewables by 2020; the government’s green energy firm Masdar has launched renewable energy projects including solar plants.

The winning bidders offered to provide electricity for 2.42 cents per kilowatt hour, one of the most competitive prices seen in the solar industry.