Saudi Arabian utility developer ACWA Power, partly owned by the sovereign Public Investment Fund, has signed financing agreements for a total investment of $8.5 billion for the NEOM Green Hydrogen Project (NGHP), which is expected to be commissioned in 2026.
The investment funded by a combination of long-term debt and equity was agreed with NEOM Green Hydrogen Company (NGHC), a joint venture between ACWA Power, Air Products and NEOM Company, with ACWA Power holding a 33.3% equity stake, the utility said in a statement on Riyadh's Tadawul exchange on Wednesday.
The total financing consists of $5.852 billion senior debt and $475 million of mezzanine debt facilities, both arranged on a non-recourse project finance basis, as follows:
- $1.50 billion from National Development Fund (NDF) on behalf of National Infrastructure Fund (NIF).
- $1.25 Billion is in the form of Saudi riyal denominated financing from Saudi Industrial Development Fund (SIDF).
The balance is from a consortium of financiers, structured as a combination of long term uncovered tranches and a Euler Hermes covered tranche. The financiers include First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Mitsubishi UFJ Financial Group, BNP Paribas, Abu Dhabi Commercial Bank, Natixis, Saudi British Bank, Sumitomo Mitsui Banking Corporation, Saudi National Bank, KFW, Riyad Bank, Norinchukin Bank, Mizuho Bank, Banque Saudi Fransi, Alinma Bank, APICORP, JP Morgan, DZ Bank, Korea Development Bank and Credit Agricole.
NGHP comprises the end-to-end set up and operation of a multi-billion-dollar green hydrogen and green ammonia facility in the NEOM region of Saudi Arabia, under a 30-year green ammonia offtake contract with Air Products.
(Reporting by Brinda Darasha; editing by Seban Scaria)