ACWA Power says $8.5 bln agreements signed to finance NEOM Green Hydrogen

ACWA Power's Wind Turbine Generators

ACWA Power announced that NEOM Green Hydrogen Co. (NGHC) signed agreements with a consortium to finance the NEOM Green Hydrogen Project at total investment cost of $8.5 billion, according to a statement to Tadawul.

The project is funded by a combination of long-term debt and equity, the company said.

It comprises the development, financing, design, engineering, procurement, manufacturing, factory testing, transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of a world scale green hydrogen and green ammonia facility in the NEOM region of Saudi Arabia, under a 30-year green ammonia offtake contract with Air Products.

The total financing consists of $5.85 billion senior debt and $475 million mezzanine debt facilities, both arranged on a non-recourse project finance basis, as follows:

- $1.5 billion from the National Development Fund (NDF) on behalf of the National Infrastructure Fund (NIF) under foundation.

- $1.25 billion in the form of SAR-denominated financing from the Saudi Industrial Development Fund (SIDF).

The balance is from a consortium of financiers, structured as a combination of long-term uncovered tranches and a tranche covered by Euler Hermes.

The consortium comprises First Abu Dhabi Bank, HSBC, Standard Chartered Bank, Mitsubishi UFJ Financial Group, BNP Paribas, Abu Dhabi Commercial Bank, Natixis, Saudi British Bank, Sumitomo Mitsui Banking Corporation, Saudi National Bank, KFW, Riyad Bank, Norinchukin Bank, Mizuho Bank, Banque Saudi Fransi, Alinma Bank, APICORP, JP Morgan, DZ Bank, Korea Development Bank and Credit Agricole.

NGHC is a joint venture between ACWA Power, Air Products and NEOM Co., with ACWA Power holding a 33.3% stake.