Ibri II solar financing nears close
An ACWA Power-led consortium – comprising Kuwait's GIC (40%) and Alternative Energy Projects (10%) – is expected to reached financial close on a $263 million DFI/ECA-backed loan to finance the 500MW Ibri II solar PV project in Oman in early 2020.
The $350 million project, located 300km west from Muscat, will be the first utility-scale solar PV in the Sultanate, and signed a 15-year approximately $0.025 per kilowatt hour PPA with Oman Power and Water Procurement Company (OPWP) in April this year. The scheme has a long tail with a 10-year gap between the end of the PPA and all other contract agreements between OPWP and the sponsors. Commercial operation is scheduled for mid-2021.
OPWP awarded the tender on 7 March 2019. ACWA came in with the lowest bid beating a Masdar, Total and Jinko team, as well as a Marubeni and Oman Gas Company-led consortia. Project financing was submitted to OPWP as part of the bidding process, which launched early in 2018. OPWP is being advised by Synergy Consulting (financial), DLA Piper (legal), and Fichtner (technical).
The 15-year debt (16.75 years door-to-door) is being led by Standard Chartered, with participation from Riyad Bank, Siemens Bank and Warba Bank. AIIB will also provide funding, while the recently formed Saudi ECA, Saudi Export Development Authority, will put up a $70 million direct loan tranche priced at 220bp over Libor, which steps down to around 200bp upon operation. The $88 million equity component will be provided by the members of the consortium based on their respective shareholdings.
