NEOM JV to secure billions in financing in early 2022, ACWA CEO says

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DUBAI, Oct 11 (Businesshala) – ACWA Power, which debuted on the Saudi Arabian stock market on Monday, will finalize billion-dollar funding for the planned future city of NEOM, ACWA’s green hydrogen joint venture, in the first quarter of next year. expected to give. said the CEO.

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The project, which will be equally owned by Air Products, ACWA Power and NEOM, will produce green ammonia for export to global markets, with the first shipments from NEOM’s port expected in the first quarter of 2026.

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“We haven’t really finalized the group of banks yet, but we are very advanced in structure and work is being done internally,” CEO Paddy Padmanathan told Businesshala in an interview, adding that the project is “on track.” ” were added.

He said about 20% of the $6.5 billion project would be funded with equity and the remainder would be limited-recourse project finance.

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“We would like to make sure it is linked to sustainability,” he said.

Businesshala reported in January that the joint venture had hired financial firm Lazard to advise on the project.

Padmanathan said ACWA Power is planning projects this year with a total investment cost of around $16 billion.

Some projects planned last year were pushed to this year due to the COVID-19 pandemic, with ACWA projects totaling $3.5 billion in 2020 – missing the $10 billion target as a result of the pandemic’s impact.

ACWA Power, which operates in 13 countries, is bidding for renewable energy projects in Uzbekistan, Egypt, South Africa and Indonesia, as well as a large pipeline of projects in Saudi Arabia, the CEO said.

“We have five projects that we have already bid for in Indonesia, where we know we have the lowest prices on them. We are waiting for the Indonesian government to proceed.”

Asked whether ACWA will retain its Dubai “expanded headquarters” as mentioned in the IPO prospectus, Padmanathan said Riyadh has always been its base.

Saudi Arabia said in February that from 2024, it would stop awarding state contracts to companies that base their Middle East centers in any other country in the region, which analysts described as a tourism and business hub in Dubai. seen as a challenge to the dominance of

“As we grew our international business, at that point, it made sense for us to retain that satellite office (in Dubai) for efficiency. will continue to increase, simply because of the volume of activity too,” he said.

“We have bought some land and we are looking at developing our own office space. We are on lease. (Reporting by Yousef Saba Editing by Mark Potter)

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