Logo of ACWA Power
International Company for Water and Power Projects (ACWA Power) announced today, Oct. 27, the financial close of a major debt facility of $7.2 billion for the Jazan Integrated Gasification Combined Cycle (IGCC) project.
According to a bourse statement, the project is a joint venture (JV) between ACWA Power (25% equity stake), Aramco, Air Products and Air Products Qudra.
The step comes after signing the agreements for the asset acquisition and project financing, which were announced on Sept. 27, 2021.
ACWA Power completed today the acquisition of the first group of IGCC assets from Aramco at a value of $12 billion.
Under a 25-year contract with Aramco, the JV project will complete the tests and start operating and maintaining the plant to supply power, steam, hydrogen, and other facilities for the Aramco refinery in Jazan.
The statement clarified that the financial closure of the senior debt facilities was completed on Oct. 18, amounting to $7.2 billion, which was arranged on the basis of a non-recourse project finance.
A consortium of financiers participated in the financial closure, comprising ADCB, Alinma Bank, Al Rajhi Bank, APICORP, Bank AlJazira, Bank Albilad, Bank of China, Banque Saudi Fransi, DZ Bank, First Abu Dhabi Bank, Intesa, JP Morgan Chase, Korea Development Bank, Mizuho Bank, MUFG, Natixis, Riyad Bank, SABB, Samsung Life, Samsung Securities, Saudi National Bank, Saudi Industrial Development Fund, SMBC and Standard Chartered Bank.
According to data compiled by Argaam, Aramco, Air Products, ACWA Power and Air Products Qudra announced on Sept. 27, the signing and finalization of definitive agreements for the asset acquisition and project financing of the $12 billion (SAR 45 billion) air separation unit (ASU)/gasification/power JV in Jazan Economic City.
Saudi Aramco, via its subsidiary Saudi Aramco Power Co. (SAPCO), has a 20% share in the JV, Air Products owns 46%, ACWA Power (25%), and Air Products Qudra (9%). Moreover, Air Products’ total ownership position is 50.6% by owning an additional 4.6% through Air Products Qudra.
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