Hassyan Energy has confirmed that it has completed a US$2.47 billion financing package to build its Hassyan clean coal plant in Dubai.
The joint venture between Acwa Power, Harbin Holding Company and Dubai Electricity and Water Authority (Dewa) said that it had reached financial close on funding for the first phase of its proposed 2.4 gigawatt coal fired power station in Hassyan, close to Dubai’s border with Abu Dhabi and around 60 kilometres south-west of central Dubai.
Hassyan Energy said that total project investment stood at $3.4bn with limited recourse project financing split into a combination of senior secured financing and a secured mezzanine tranche.
The banks and financial institutions involved included Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, China Construction Bank, Silk Road Fund, First Gulf Bank, Union National Bank, Standard Chartered Bank, National Commercial Bank, Commercial Bank International and Emirates NBD.
In November The National reported that construction work on the project had already started after a funding agreement had been struck with banks.
“The commitments from a diverse group of lenders from various jurisdictions demonstrates the strength of the transaction and, above all, further demonstrates the faith and belief that financial markets have in Dewa’s track record and strength and belief in the Dubai initiatives in delivering large scale projects on the PPP framework,” said Mohammed Abunayyan, chairman of Acwa Power.
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