Riyadh — Rabigh 1 Independent Power Project has completed refinancing of its senior facilities, said a press statement issued by ACWA Power and Saudi Electricity Company.
The project is housed under the project company Rabigh Electricity Company (RABEC) owned by ACWA Power, Korea Electric Power Corporation (KEPCO) and Saudi Electricity Company (SEC).
The project that was built with a total project cost of over US$ 2.5 billion had many firsts to its credit. It was the first IPP project in the Kingdom to be procured without a Sovereign Guarantee. It introduced for the first time a Chinese EPC Contracting Consortium and major power plant equipment of Chinese manufacture in the GCC region. It was incidentally the first major project finance transaction in the region in the aftermath of the global financial crisis of 2008-09.
The project reached commercial operation date in April, 2013, and has been fulfilling the contract dispatch obligations since then.
The refinancing facilities of over $1.825 billion equivalent in aggregate were provided on a combined conventional and Islamic basis. The two classes of financing parties will share the transaction security package.
Commenting at the announcement, Thamer Al Sharhan, Chairman of Rabigh Electricity Company (RABEC), said: “It is heartening to see the Rabigh 1 IPP project, which was the first IPP project in Kingdom under the new framework, to go from original financial close, construction, three years of smooth operation and now successful refinancing. This demonstrates the success of the IPP model in the Kingdom and shows how proactive financial management can improve the economics for all parties concerned.”
Fahad Alsudairi, the CFO of Saudi Electricity Company said: “The refinancing of Rabigh 1 IPP has been achieved under difficult financing conditions and is structurally a win-win for all parties concerned.” — SG
