ACWA Power consortium achieves financial closure for largest solar plant in Oman

A consortium led by ACWA Power, GIC and AEPC achieved the financial closure for the 500 megawatts (MW) solar photovoltaic (PV) Independent Power Project (IPP) at Ibri in Oman.

Considered as the largest utility scale solar plant in the Sultanate as of date, the $400 million project will be funded on a debt to equity ratio of 70:30.

A syndicate of 6 international and local lenders will provide the $275 million senior debt, the Saudi-based utilities provider said in a statement.

The statement also noted that the mandated lead banks, including Asian Infrastructure Investment Bank (AIIB), Bank Muscat, Riyad Bank, Siemens Bank, Standard Chartered Bank and Warba Bank, helped structure the project on a 16.5 year door-to-door tenor.

“Achievement of this milestone together with our partners – co-shareholders, contractors, and the bank group comprising international and local banks - notwithstanding the trying financial and macroeconomic challenges, demonstrates our structuring capabilities and the resilience of our long lasting partnerships,” Rajit Nanda, Chief Investment Officer of ACWA Power, said.

The project also represents the first renewable energy financing in Oman as well as the GCC region by Beijing-based AIIB.

The plant, to be developed on a build, own, operate (BOO) basis, will be enough to supply an estimated 33,000 homes with electricity and will offset 340,000 tons of carbon dioxide emissions a year.