AS&H Clifford Chance advised Ajlan & Bros Holding Group on reaching successful financial close of the Taiba 2 and Qassim 2 IPP projects.
The consortium comprised of Aljomaih Energy & Water Company, Ajlan & Bros Group, Buhur for Investment Company and the EDF Group.
With a total capacity of 3.96 GW, these two Combined Cycle Gas Turbine (CCGT) power projects have been financed through a combination of equity bridge financing and senior debt, secured by Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank, Bank Saudi Fransi Bank, Arab Petroleum Investment Corporation (APICORP), Saudi Investment Bank, Bank Al Jazira, Commercial Bank of Dubai and First Abu Dhabi Bank, for the approximate value of $3.9 Billion (equivalent to SAR 14.6 Billion).
The financing will be instrumental in accelerating the development and deployment of the projects, which will be the first two projects in KSA with a provision for carbon capture in line with the Kingdom’s Vision 2030 and the Saudi Green Initiative.
The projects will be equipped with the latest HL-class gas turbines from the German company Siemens, in combination with steam turbines and generators, which will generate approximately 2,000MW of electricity per project to enhance the generation capabilities of the electrical network in the Kingdom of Saudi Arabia – the largest electrical network in the Middle East and North Africa, in line with the Kingdom’s Vision 2030, by applying a circular carbon economy approach.
Ajlan Al-Ajlan, Chairman of the Board of Directors of Ajlan & Bros Group stated: “The Taiba-2 and Qassim-2 projects signify Ajlan & Bros Group’s unwavering commitment to the region’s business landscape and our dedication to advancing the utility sector.”
The cross-border team was led by Partner Omar Rashid (Riyadh) and Counsel Aysh Chaudhry (Riyadh). The wider team comprised of Partner Richard Parris (Dubai) and Senior Associate Jonathan Roux (Dubia) on the project diligence (with support from Associates Elsir Tawfik (Riyadh), Omar Alharbi (Riyadh) and Marwan Alamoudi (Riyadh) for KSA diligence elements); and Partner Jeremy Barker (Dubai), Counsel Cheuk Yin Cheung (Dubai), Senior Associate Suzanne Dand (Dubai) and Associate Marya Manna (Dubai) on the EBL financing documentation.
This transaction demonstrates our market-leading ability to support our clients in an integrated manner in bringing together the very best of KSA and wider regional expertise for their benefit.
