Abu Dhabi, UAE – The Barakah One Company (Barakah One) – a joint-venture between the Emirates Nuclear Energy Corporation (ENEC) and the Korea Electric Power Corporation (KEPCO) – has completed the refinancing of the Barakah Nuclear Energy Plant, working with key banking institutions in the UAE.
The company has refinanced the outstanding balance under the loan facilities extended by the Export-Import Bank of Korea (KEXIM), the export credit agency of South Korea.
Such facilities were originally committed in 2016 in connection with the construction and development of the Barakah Plant. The KEXIM loan facilities have been refinanced through a competitive market process resulting in the selection of two leading Emirati banks, Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB).
Barakah has three reactors currently generating abundant, clean electricity for the UAE, with the fourth unit recently starting its operational readiness phase.
The refinancing is the next step in the development of the Barakah Plant as the project continues to progress through to full, four-unit commercial operations.
Barakah has enabled the rapid decarbonisation of the UAE’s power sector. Once commercially operational, Unit 4 will raise the Barakah Plant’s total clean electricity generation capacity to 5.6GW, equivalent to 25 percent of the UAE’s electricity needs, delivering more than 40TWh of clean electricity per year.
“We have showcased a new model to the world for nuclear developments, demonstrating that new nuclear projects like Barakah are bankable, can be delivered in a timely manner, while continuing to meet the highest standards of safety and quality,” Mohamed Ibrahim Al Hammadi, ENEC’s Managing Director and Chief Executive Officer, stated. “We are proud to have two of the largest banks in the UAE providing the financing for our programme, further demonstrating the far-reaching benefits Barakah brings in stimulating sustainable economic growth”
Nasser Al Nasseri, CEO of Barakah One Company, said: “We appreciate the role K-EXIM has played during the development phase of the Barakah Plant, and as we now transition to full operations and move to the next phase.”
The Barakah Plant is a major contributor to the nation’s Net Zero by 2050 goals, generating clean electricity around the clock, whilst preventing millions of tons of carbon emissions.
The ENEC is now focused on driving innovation in new technologies including Small Modular Reactors (SMRs), clean molecules, synthetic fuels and clean hydrogen, to support the UAE’s continued clean energy transition.