Saudi Arabia’s ACWA Power International is to secure a USD-344-million (EUR 308m) loan from three lenders to support the development of a 200-MW solar project in Dubai.
The company’s CEO, Paddy Padmanathan, told reporters at a business conference on Sunday that the amortising credit facility will be extended by Abu Dhabi’s First Gulf Bank and Saudi banks National Commercial Bank and Samba Financial Group.
The loan will mature in 27 years and bear an interest rate of 4%.
ACWA expects to sign a credit agreement for the USD-400-million project by the end of this month. Padmanathan noted that the bank financing will cover about 86% of the total cost of the project.
The 200-MW solar park will be constructed for Dubai Electricity and Water Authority (Dewa) and will be the second phase of the Mohammed bin Rashid Al-Maktoum. ACWA’s partner is Spain’s TSK. The two companies got a preferred bidder status for the scheme after placing an unprecedented USD 0.0598625 per kWh bid.