Taqa Led Group Secures USD 4bn to Build Saudi Power Plants

A group of Abu Dhabi National Energy Company (Taqa)-led investors has raised USD 4 billion in financing to construct two greenfield gas-fired power stations in Saudi Arabia, the company said on Wednesday.

The projects –Rumah 2 and Nairyah 2  will produce 3.6 gigawatts of power for the kingdom's national grid. They will be developed on a build, own and operate basis under two 25-year power purchase agreements with Saudi Power Procurement Co.

"This achievement underlines our footprint in Saudi Arabia and is testament to our resolve to provide effective, sustainable energy infrastructure to the region. The early works phase has already been completed, and construction is well underway." commented Taqa's generation business CEO Farid Al Awlaqi.

Key Highlights:

• Taqa-led consortium secures USD 4bn to build two gas-fired power plants in Saudi Arabia with a combined capacity of 3.6GW
• Consortium partners include Japan’s Jera (31 percent) and AlBawani Capital (20 percent), with Taqa holding a 49 percent stake
• Financing structured through senior debt and equity bridge loans, with lenders including Al Rajhi Bank, Bank of China, and First Abu Dhabi Bank

Japan's Jera Co. and Riyadh-based AlBawani Capital, which also joined the consortium, have 31 percent and 20 percent stakes respectively, while Taqa has a 49 percent stake.

The funding was structured as a combination of senior debt and equity bridge loans provided by local and global lenders at leverage above 80 percent. Some of the lenders are Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, and First Abu Dhabi Bank.

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Engineering, procurement and construction contracts went to Harbin Electric International and China Tiesiju Civil Engineering Group.

 In spite of a 20 percent decline in H1 net profit as a result of falling oil prices and suspended UK production, Taqa shares closed 1.2 percent up at AED 3.4 on Tuesday.