Acwa Power’s joint venture (JV) entity has closed a financing agreement worth $8.5bn for a major green hydrogen project, which will take shape in Saudi Arabia’s Neom city, the firm has announced.
In addition to Acwa, Neom Green Hydrogen Company (NGHC) has US-based Air Products and Neom as its JV partners, the statement explained.
The finance for the project will come from a combination of long-term debt and equity, stated Acwa Power in its filing to Saudi bourse Tadawul. The total financing consists of $5.85bn in senior debt and $475mn of mezzanine debt facilities, both arranged on a non-recourse project finance basis.
It includes: $1.5bn from the National Development Fund (NDF) on behalf of National Infrastructure Fund (NIF) under foundation and, $1.25bn is in the form of Saudi riyal denominated financing from the Saudi Industrial Development Fund (SIDF).
The balance will come from a consortium of financiers, structured as a combination of long term uncovered tranches and a Euler Hermes covered tranche, the bourse filing outlined. These include First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Mitsubishi UFJ Financial Group, BNP Paribas, Abu Dhabi Commercial Bank, Natixis, Saudi British Bank, Sumitomo Mitsui Banking Corporation, Saudi National Bank, KFW, Riyad Bank, Norinchukin Bank, Mizuho Bank, Banque Saudi Fransi, Alinma Bank, Apicorp, JP Morgan, DZ Bank, Korea Development Bank and Credit Agricole.
According to Acwa Power, the project scope includes the development, financing, design, engineering, procurement, manufacturing, factory testing, transportation, construction, erection, installation, commissioning, insurance, ownership, operation and maintenance of the world-scale green hydrogen and green ammonia facility in Neom.
Also a 30-year green ammonia offtake contract has been inked with Air Products, it added.
