The Arab Petroleum Investments Corporation (APICORP) has announced a US$50mn credit facility for SirajPower, the UAEs distributed solar energy provider, to expand its portfolio of distributed solar energy projects across the Middle East
This is in line with APICORP?s vision and strategy to focus on renewables and support the region?s transition towards a sustainable energy future, committing around US$450mn of capital towards renewable projects in the past four years.
The transaction will enable SirajPower to deploy its rooftop solar PV turnkey solutions across various industries, allowing the private sector to save on their utility bills while simultaneously offsetting their carbon footprint through an innovative structure to finance an entire portfolio of distributed solar projects on a long-term basis.
Dr Ahmed Ali Attiga, CEO of APICORP, said, ?Through innovative financing solutions to our partners and direct investments, APICORP plays a vital role in bringing world-class energy technologies to the region. We have witnessed a strong appetite for solar projects as a sustainable source of renewable energy by both the government and private sector in the UAE and MENA region in general.?
Mohammed Abdulghaffar Hussain, chairman of SirajPower and Creek Capital, added, ?The market is full of potential, and we are gearing up to the next phase of a promising and rapid development across the wider Middle East region. Our partnership with APICORP is a testament not only to the bank?s innovative approach to financing but also to their keen desire to play a majro role in the region?s burgeoning green economy.?
APICORP increases its financing and equity investments in the renewables sector
The company?s first renewables financing deal came in 2017 where it provided a commitment of US$110mn to Shuaa Energy II to build 800MW solar PV?s at Mohammed bin Rashid Al Maktoum Solar Park in Dubai. This was followed by a strategic five-year Murabaha financing facility worth US$75mn with Saudi Arabia-based Alfanar Company to support its renewable energy projects globally. More recently, APICORP provided a US$40mn financing facility to Saudi Arabia?s first independent sewage treatment plant (ISTP) to bring more cost-effective technologies to effectively recycle waste water.
According to APICORP?s MENA Energy Investment Outlook 2020-2024, the MENA region will need to invest around US$144bn in the power sector to meet growing energy needs.
Squire Patton Boggs (MEA) LLP acted as APICORP?s legal advisor on this deal, kiloWattsol SAS acted as the technical advisor and INDECS Consulting acted as the insurance advisor. Watson Farley & Williams (Middle East) LLP acted as SirajPower?s legal advisor.
