Siraj 1 SPV

Siraj-1 Solar Farm- JBIC Direct Loan

Borrower (s)
Siraj 1 SPV
Industry
Power/PV solar
Area of finance
Project & Infrastructure Finance
Country
Qatar

Deal Overview

Financial close for the 800.15 MW Siraj-1 solar power project in the Al Kharsaah area, the very first utility scale renewables transaction and plant in Qatar. The QAR1.7 billion ($466 million) project, which is being developed under a 25-year BOOT concession, has secured $330 million of senior loans...

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Financial close for the 800.15 MW Siraj-1 solar power project in the Al Kharsaah area, the very first utility scale renewables transaction and plant in Qatar. The QAR1.7 billion ($466 million) project, which is being developed under a 25-year BOOT concession, has secured $330 million of senior loans from JBIC and Mizuho Corporate Bank.

The 800.15 MW Al Kharsaah solar photovoltaic IPP is located on approximately 2,500 acres of land 50 miles west of Doha. The plant is expected to meet up to 10 percent of Qatar’s peak electricity demand, helping diversify Qatar’s energy generation resources and enable the country to host the first carbon-neutral FIFA World Cup in 2022.

The Al Kharsaah solar power project will apply cutting-edge solar energy technologies — including bifacial dual panels to save space, automated systems for sun-tracking and robotic cleaning of solar panels — to help increase production efficiency and reduce the plant’s operational expenses. The plant is expected to reduce 26 million tons of CO2 during its lifetime. 

Bifacial solar panels have long been the “next big thing” in the Middle East, and the Al Kharsaah project will likely serve as a tipping point in wider adoption. 

The deal spanned multiple jurisdictions and time zones, including Qatar, United Arab Emirates, Japan, France and the UK.

This was a true game-changer for a couple of reasons: 

  1. The transaction documents were based on a conventional, base load IPP model, which presented numerous legal and risk allocation complications, particularly with respect to adjusting the dual-tariff conventional IPP structure to a single energy charge renewables structure, which required considerable negotiation with KAHRAMAA (the Qatari procurer). 
  2. This is the first renewables transaction in the Middle East directly backed by an export credit agency (JBIC) on a soft mini-perm basis. ECA-backed financing has historically been considered too complex for renewable energy transactions due to the short financial close deadline and market migration toward short-term financing on the basis of soft mini-perms (ECAs have historically only lent on long term tenors), with agreed refinancing deadlines. 

Al Kharsaah is Total’s biggest solar project to date and Marubeni’s third large-scale solar PV IPP in the Middle East and North Africa.

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Deal Volume
$ 330m
Financial Close
22 July 2020
Sources

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Projects

Siraj-1 Solar Farm

Greenfield
PV solar
Qatar
$ 467m