The consortium behind Saudi Arabia's Riyadh PP11 Independent Power Project (IPP) has completed the refinancing of its $1.2 billion debt last year, announced on Thursday.

The Dhuruma Electricity Company, owned 50 percent by Saudi Electric Company (SEC), 20 percent by ENGIE, and 15 percent each by Sojitz and Al Jomaih Energy and Water, completed the refinancing of the gas-fired IPP at the end of September 2021, consortium member Engie said in a press statement.

The 1,730 megawatts combined-cycle gas-fired power plant, located about 135 kilometres west of Riyadh in Dhuruma, had started commercial operations in March 2013.

PP11 had reached financial close in 2010, raising $1.55 billion of debt, followed by a first partial refinancing in 2016.

Engie said 12 international and local lenders took part in the refinancing with the US dollar-denominated tranches provided by a pool of nine European and Asian commercial banks, while three local banks provided the Saudi Riyal-denominated tranches.

The company said the refinancing helped in "bringing down the margin and slightly lengthening the tenor to the benefit of SEC and the shareholders."

SEC is the sole off-taker of the power sold by Dhuruma Electricity Company under a 20-year power purchase agreement.

In June 2010, Sojitz had said in a press statement that the total investment cost would be approximately 200 billion yen ($1.7 billion).

(1 US Dollar = 114.69 Japanese Yen)

(Writing by SA Kader; Editing by Anoop Menon)
(anoop.menon@lseg.com)

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