JinkoSolar, Marubeni and the Abu Dhabi Water and Electricity Authority (ADWEA) have reached financial close on the 1.17GW Sweihan solar photovoltaic (PV)project in Abu Dhabi.
Debt and equity deals totalling $870m have been finalised with a syndicate of international and local banks.
The Bank of Tokyo-Mitsubishi is providing the major portion of the loan, while other Japanese contributors include Sumitomo Mitsui Banking, Mitsubishi UFJ Trust and Norinchukin Bank.
Around $650m financing is being provided by the Bank of Tokyo-Mitsubishi and three Japanese banks, while the remaining $222m has been raised in equity from the authority and project developers Marubeni and JinkoSolar.
The project, which is claimed to be the world’s largest solar power plant, is also being financed by BNP Paribas Credit Agricole and Natixis, as well as First Abu Dhabi Bank.
The project, which is expected to reach commercial operation in April 2019, will supply electricity to ADWEA under a 25-year power purchase agreement.
ADWEA is the majority owner of the project with a 60% interest. JinkoSolar and Marubeni each hold a 20% stake.
ADWEA chairman Abdullah Ali Musleh Al Ahbabi said: “Today’s Financial Closing is the culmination of 18 months of hard work, determination and commitment from many people, from multiple Abu Dhabi Government stakeholders, the international PV investor market, the international and local lending community and related advisors.
“I would like to take this opportunity to thank all those involved in making today’s milestone possible. However today’s event is just the beginning. Over the course of the next 2 years, the vision of the Sweihan PV Project will become reality.”
The project marks ADWEA's entry into renewable energy. Abu Dhabi aims to generate 7% of its energy from renewable sources by 2020.
JinkoSolar chairman Xiande Li said: “The financial closing of the Sweihan Project is an important step-forward to energize one of the largest solar power plants in the world.”
Image: The funding of $870m has been raised for the solar PV project in UAE. Photo: courtesy of franky242 / FreeDigitalPhotos.net.