ACWA Power announced the completion of the signing of financing agreements by NEOM for green hydrogen with a financing alliance for the NEOM green hydrogen project, at a total investment cost of $8.5 billion.
ACWA Power said in a statement on Tadawul Saudi Arabia today, Wednesday, that the financing is a mixture of long-term debt and capital financing.
The NEOM Green Hydrogen Company is a joint venture between ACWA Power, Air Products and NEOM, and ACWA Power owns 33.3% of the company’s ownership.
The project involves the development, financing, design, engineering, procurement, manufacturing, plant testing, transportation, construction, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of a world-wide green hydrogen and green ammonia facility in the NEOM region of Saudi Arabia, under a 30-year green ammonia contract with Air Products.
She added that the total financing includes priority debts of $5.852 billion and subordinated debts of $475 million, both of which are arranged on the basis of project financing without the right of recourse against ACWA Power.
The financing is divided into $1.5 billion from the National Development Fund on behalf of the National Infrastructure Fund (under construction), and $1.25 billion in financing in Saudi riyals from the Saudi Industrial Development Fund.
The remaining balance is from a financing consortium in the form of a combination of long-term unsecured payments and a payment insured by Euler Hermes comprising First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Mitsubishi UFG Financial Group, BNP Paribas, Abu Dhabi Commercial Bank, and Natixis, and the Saudi British Bank.
It also includes Sumitomo Mitsui Banking, Saudi National Bank, KFW, Riyad Bank, Norinchukin Bank, Mizuho Bank, Banque Saudi Fransi, Alinma Bank, Apicorp, JPMorgan, DZ Bank, Korea Development Bank, in addition to Credit Agricole.