Hogan Lovells advises senior lenders on Saudi Sudair Solar PV IPP

Press releases | 17 August 2021

Dubai – 17 August 2021. Hogan Lovells has advised Al Rajhi Bank, APICORP, Mizuho Bank, Riyad Bank, Standard Chartered Bank and The Korea Development Bank as senior lenders on the financing of Sudair solar PV IPP in the Kingdom of Saudi Arabia. The equity bridge facilities are provided by Bank Al Bilad, Saudi British Bank and SMBC International Plc. Financial close was achieved recently.

Sudair will become one of the largest single-contracted Solar PV plants in the world and the largest in Saudi Arabia with an estimated installed capacity of 1,500MW. The project value is approximately SAR 3.4 billion. The project is expected to power 185,000 homes and offset nearly 2.9 million tons of emissions annually. The solar PV technology uses bi-facial panels with tracking technology and an automated robotic cleaning solution. The project is a key part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy capacity outlined in the Kingdom’s Vision 2030.

The developer team led by ACWA Power includes Saudi Aramco Power Company (SAPCO) and the Water & Electricity Holding Company (Badeel), a company owned by PIF. The offtaker under a 25 year power purchase agreement is Saudi Power Procurement Company.

The Hogan Lovells team was led by Dubai based projects partner, Sohail Barkatali and supported by Dubai based partners Rahail Ali and Imran Mufti. The team was supported by senior associates Ahmet Kalafat (Dubai), Shah Jahan Khandokar (London), Oliver Hamilton (London) and associate Ankita Bhansali (Dubai).

Sohail Barkatali commented: “We are delighted to continue to play a leading role in the development of the renewable energy sector in the region and particularly within Saudi Arabia. This project builds on our success of advising lenders on numerous Saudi power and water transactions. This project represents a milestone partnership between a very significant Saudi government backed consortium and leading Saudi financial institutions and we are pleased to have played a key part in bringing this to a successful financial close.”

Rahail Ali, Managing Partner of the Hogan Lovells office in Dubai said: “The Sudair project is yet another example demonstrating the trust placed by lenders in Hogan Lovells when it comes to advising on big ticket infrastructure projects in Saudi Arabia – we continue to be the premier go to firm for lenders in the renewable energy space.”