Saudi Aramco to secure low-interest bridge loan to fund Sudair Solar PV plant, say sources

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Saudi Aramco will obtain a bridge loan at a competitive interest rate to finance Sudair Solar photovoltaic (PV) project, CNBC Arabia reported, citing a banking source.

The project’s total financing facilities stood at nearly $600 million, including a bridge loan, which represents approximately 27% of the total debt facilities, while the remaining 6% will be financed via the project's future proceeds.

Sumitomo Mitsui Financial Group will arrange the bridge loan facility for the Saudi oil giant company at 80 basis points (bps). This is the same rate at which Water and Electricity Holding Co. (Badeel), a wholly-owned subsidiary of the Public Investment Fund (PIF), secured its loan facility.

Bank Aljazira will provide an equity bridge loan to ACWA Power Saudi Arabia at 120 bps.

The bank facility will be priced at 110 bps, in addition to 150 bps in fees. This rate will increase to 275 bps by the maturity of the seven-year loan.

In April, PIF launched the 1.5GW Sudair Solar PV plant in Sudair Industrial City, at an investment value of SAR 3.4 billion, with a PIF-backed consortium signing a power purchase agreement with the Saudi Power Procurement Co. for 25 years.

The move represents an important step within the renewable energy program that is being implemented under the umbrella of the National Renewable Energy Program, Argaam earlier reported.

ACWA Power and Badeel will each own a 35% stake in Sudair One Renewable Energy Co., a special purpose vehicle incorporated for the project. The remaining 30% stake will be held by Aramco subsidiary Saudi Aramco Power Co. (SAPCO).