Media: Press Releases | 03 December 2020
Dubai, 3 December 2020 – International law firm Hogan Lovells has advised Al Rajhi Banking and Investment Corporation, Abu Dhabi Islamic Bank, Mizuho Bank, Ltd. and Riyad Bank as senior lenders to the ACWA Power led consortium (including Gulf Investment Corporation and Al Bawani Water and Power Company) on all aspects relating to the approximately US$650m financing of the Jubail 3A greenfield sea water reverse osmosis desalination project procured by Saudi Water Partnership Company (SWPC).
The debt includes commercial and Islamic financing tranches as well as Islamic and conventional hedging. Hogan Lovells also advised Riyad Bank and Bank AlJazira on the equity bridge loan arrangements.
Jubail 3A is the latest water desalination project to close in Saudi Arabia and the first desalination project to be financed in the Kingdom notwithstanding the Covid 19 pandemic. Jubail 3A has a capacity of 600,000 cubic metres a day. The EPC contractor is a consortium of SEPCOIII, Power China and Abengoa with the operation and maintenance contract awarded to an affiliate of NOMAC.
The Hogan Lovells team was led by Dubai-based Corporate & Finance partner Sohail Barkatali, with support from partners Rahail Ali and Imran Mufti, senior associates Tony Nicholson and Ahmet Kalafat and associate Shaakir Daud.
Commenting on the project, Sohail Barkatali said: “We are delighted to have advised the conventional and Islamic lenders to the ACWA consortium on the successful financing for the Jubail-3A project, amidst a global pandemic, demonstrating the commitment of these lenders to the Kingdom of Saudi Arabia and to their confidence in ACWA Power”.
Rahail Ali, Managing Partner of Hogan Lovells office in Dubai commented: “We continue to build on recent successes in the Kingdom, following our work with lenders who financed Sakaka, the Kingdom’s first solar PV project. Saudi Arabia remains a buoyant and important market for us and we remain actively involved in other key projects within the Kingdom and elsewhere in the region.”