Shams Power Company Raises US$600 M for CSP Project

Source: www.gulfoilandgas.com 3/7/2011, Location: Middle East

Shams Power Company announced the financial close of Shams 1, one of the world’s largest concentrated solar power (CSP) projects and the first of its kind in the Middle East.TheUS$600 million closing marks the largest solar project transaction to date and combines financing from 10 regional and international lenders.

Demonstrating strong interest from lenders, the financing –a non-recourse 22-year door-to-door fully amortizing structure – was oversubscribed with commitments totalling more than US$900 million. Shams 1 lenders included BNP Paribas, KfW, Mizuho, National Bank of Abu Dhabi, Natixis, Société Générale, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi, Union National Bank and West LB. BNP Paribas acted as financial advisor.

“The dynamic deal team was able to leverage knowledge across the sponsor group resulting in an innovative structuring and a ground-breaking financing for a landmark deal,” said Derek Rozycki, Executive Director, Structured Finance and Capital Markets at Mubadala, the parent company of Masdar. “Going forward, we will continue to leverage our extensive expertise in international capital markets and our knowledge of the region to support these types of leading edge financing deals.”

The joint venture between Masdar (60%), Total (20%) and Abengoa (20%) will develop, build, operate and maintain the plant which will be located in Madinat Zayed, approximately 120 kilometers southwest of Abu Dhabi in the United Arab Emirates (UAE).

“With this financial close we are going one step forward toward the completion of the Middle East’s largest solar power plant,” said Philippe Boisseau, President, and Total Gas & Power. “We are pleased to partner with Masdar and Abengoa in this ambitious project. We are on schedule and the work is going well in Madinat Zayed.”

As one of Masdar’s flagship projects, Shams 1 will directly contribute toward Abu Dhabi’s target of achieving 7% renewable energy power generation capacity by the year 2020.

Dr. Sultan Al-Jaber, CEO of Masdar, added: “Shams 1 is a milestone project for the region and will be a core contributor to Abu Dhabi’s long-term renewable energy objectives. As the first utility scale, commercial solar power project in the Middle East, Shams 1 represents the realization of the vision that the Abu Dhabi leadership has for renewable energy in the Emirate. We thank our partners for their support and continued collaboration.”

Further validating the strength of the project, Shams 1 was recently awarded the “Middle East Renewables Deal of the Year 2010” by Project Finance.

Shams 1 will be one of the largest concentrated solar power plants in the world, extending over an area of 2.5 km², with a capacity of approximately 100 MW and a solar field consisting of 768 parabolic trough collectors.

Construction began during Q3 2010 and is expected to be completed in approximately two years.


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Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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