Marubeni consortium reaches financial close for Rabigh solar project

11 Apr 2021
Marubeni consortium reaches financial close for Rabigh solar project

A consortium led by Japan’s Marubeni Corporation and the local Aljomaih Energy & Water Company has reached financial close for the 300MW Rabigh photovoltaic (PV) solar independent power producer (IPP) project in Saudi Arabia

A consortium led by Japan’s Marubeni Corporation and the local Aljomaih Energy & Water Company has reached financial close for the 300MW Rabigh photovoltaic (PV) solar independent power producer (IPP) project in Saudi Arabia.

The Marubeni/Aljomaiah consortium was selected as first preferred bidder in April 2020 following a competitive tendering process.

The consortium has submitted a levelised cost of electricity (LCOE) tariff of SRhalalas6.38kWh, the second lowest submitted LCOE for the Rabigh PV project. Masdar had submitted the lowest LCOE, but due to it being shortlisted as first bidder for another of the projects in the second round, the 300MW Jeddah PV project, it was out of the running for the Rabigh project.

The power purchase agreement (PPA) was signed with the Saudi Procurement Company (SPPC) for a period of 25 years.

Bracewell LLP provided legal advisory services to the Marubeni/Aljoimah consortium for the transaction.

The project is one of the first renewables deals to include an export credit agency (ECA) soft mini-perm structure under committed financing, which has been combined with an Islamic facility tranche.

This is one of the first renewables deals to include ECA, through Japan Bank for International Cooperation (JBIC), soft mini-perm structure under its committed financing, combined with an Islamic facility tranche. 

Japan's Mizuho Bank and the local Al Rajhi Banking and Investment Corporation are providing loans for the project.

 

 

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