Riyadh, Kingdom of Saudi Arabia : The Dhuruma Electricity Company, led by a consortium comprising Saudi Electric Company (SEC) 50%, ENGIE 20%, Sojitz of Japan 15% and Al Jomaih Energy and Water 15%, successfully completed the refinancing of $1.2 billion debt for its gas fired PP11 power plant in Saudi Arabia at the end of September.
PP11 is a 1,730MW combined cycle gas-fired power plant located near Dhuruma, about 135km west of the Saudi capital city of Riyadh, which began commercial operations in March 2013. SEC offtakes the production through a long-term power purchase agreement. The PP11 project originally reached financial close in 2010, raising $1.55 billion of debt, followed by a first partial refinancing in 2016.
Twelve international and local lenders took part in this refinancing: the US dollar denominated tranches are provided by a pool of nine European and Asian commercial banks, while the Saudi Riyals denominated tranches are provided by three local banks.
The refinancing, which demonstrates ENGIE’s capabilities in structuring large and complex financing transactions, results in optimized terms going forward by bringing down the margin and slightly lengthening the tenor to the benefit of SEC and the shareholders.
“In the Kingdom of Saudi Arabia, ENGIE is a lead developer on large IPPs/IWPs as well as takes equity ownership and acts as operator; the refinancing of PP11 marks an important achievement in ensuring the long term viability of the plant being a reliable power provider to the people of Saudi Arabia. Our finance and legal teams have, over the past 18 months, worked closely with the SEC, partners, external counsels and the banks to secure this deal. Our strong relationships with the banks, favourable market conditions, and the operational track record of the plant were instrumental to the success of the significant refinancing.”
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About ENGIE in Saudi Arabia
ENGIE has been present in the region for over 30 years. ENGIE develops its activities in partnership with Saudi actors on energy production, seawater desalination, district cooling, energy efficiency services and high value-added facilities management. We have 2000 employees and have mobilized USD 8.7 Billion of capital investment in the Kingdom. ENGIE generates 7600 MW of power, equivalent to 10% of the installed capacity of Saudi Arabia and produces 176 MIGD of desalinated water per day, equivalent to 11% of market production.
About ENGIE Group
Our group is a global reference in low-carbon energy and services. Together with our 170,000 employees, our customers, partners and stakeholders, we are committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by our purpose (“raison d’être”), we reconcile economic performance with a positive impact on people and the planet, building on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers.
Turnover in 2020: 55.8 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe, Euronext Vigeo Eiris - Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG, MSCI Europe ESG, Euro Stoxx 50 ESG, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG).
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