Considered to be the largest solar plant in Jordan, it will be developed by Masdar and includes $54m from IFC’s own account and $134m mobilized from other senior lenders including a parallel loan from Japan International Cooperation Agency (JICA).
Other lenders included Dutch Development bank FMO and Europe Arab Bank as B lenders and OFID, the OPEC Fund for International Development and German development bank DEG as parallel lenders.
Masdar CEO Mohamed Jameel Al Ramahi said: “The diversity of financial institutions supporting Baynouna illustrates both IFC’s successful track record with the private sector in emerging markets over the last 60 years and the strength of its commitment to best practice.
“With backing now secured from lenders in Asia, Europe and the Middle East, the significant global interest in commercial renewable energy in Jordan and the MENA region is clear.”
The new solar plant is expected to deliver power below Jordan’s average cost of electricity, resulting in lowering the long-term costs of electricity generation in the country.
IFC Middle East and North Africa director Mouayed Makhlouf said: “Renewable energy is a pillar of IFC's work, in the region and beyond. We have already financed several major projects, encouraging private investment in the sector and pioneering innovative financing models.
"We stand ready to support Jordan in meeting its growing energy needs and becoming a model for renewable energy investments.”
IFC claims that until now, it has invested more than $300m in total on 13 projects that have enabled well over $1bn in private sector investments in power distribution and generation sectors in Jordan.
In 2013, the lender was the financial advisor and mandated lead arranger for the 117MW Tafila wind farm, which is claimed to be the first commercial-scale renewable energy project in Jordan.
