Dubai, UAE–Saudi Arabian utility developer ACWA Power said Wednesday it has signed financing agreements for a total investment of $8.5 billion with NEOM Green Hydrogen Project (NGHP).
NGHP is a joint venture between ACWA Power, Air Products and NEOM Company, with ACWA Power holding a 33.3 percent equity stake.
In a Tadawaul statement, ACWA Power said the NGHP comprises the development, financing, design, engineering, procurement, manufacturing, factory testing, transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of a world scale green hydrogen and green ammonia facility in the NEOM region of Saudi Arabia, under a 30-year green ammonia offtake contract with Air Products.
The total financing consists of $5.85 billion senior debt and $475 million of mezzanine debt facilities, both arranged on a non-recourse project finance basis as follows:
$1. 5 billion from National Development Fund (NDF) on behalf of National Infrastructure Fund (NIF) and $1.25 billion is in the form of SAR denominated financing from Saudi Industrial Development Fund (SIDF).
The statement said the balance is from a consortium of financiers, structured as a combination of long term uncovered tranches and a Euler Hermes covered tranche, comprising, in no particular order, 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.