Dentons has advised Masdar on its successful financial close in respect of the 1,800MW solar photovoltaic independent power project, DEWA Phase VI, situated in Dubai. The project is the sixth phase in the development of the Mohammed bin Rashid Al Maktoum Solar Park.
The project will sell its entire power output to DEWA, the sole buyer of power output in Dubai under a long-term PPA. The sixth phase of the project, set to be operational in stages, will power over half a million residences while reducing carbon emissions by 2.36 million tonnes annually and will increase the total production capacity to 5,000MW by 2030, making it the largest solar park in the world.
Dentons played a pivotal role in advising Masdar throughout the transaction (from bid phase all the way to a successful financial close), including negotiations with DEWA, the EPC contractor (on a complicated contractual EPC arrangement), the O&M contractor and a syndicate of financiers.
The financing was structured as a dual tranche syndicated conventional and Islamic Ijara facility. Standard Chartered Bank acted as documentation bank, global agent, conventional facility agent and account bank. Abu Dhabi Islamic Bank PJSC led on the Islamic structure, which needed to be AAOFI/UAE Central Bank compliant. First Abu Dhabi Bank PJSC acted as Global Green Facility Coordinator and HSBC Bank Middle East Limited acted as Regional Green Facility Coordinator. Hedging was provided by First Abu Dhabi Bank PJSC and Abu Dhabi Islamic Bank PJSC. Abu Dhabi Commercial Bank PJSC, Commercial Bank of Dubai PSC, First Abu Dhabi Bank PJSC, HSBC Bank Middle East Limited and Standard Chartered Bank acted as Conventional Mandated Lead Arrangers and Lenders, with Abu Dhabi Islamic Bank PJSC and Warba Bank KSCP acting as Islamic Mandated Lead Arrangers and Participants. Dentons assisted from the term sheet negotiation stage to the facility and security structuring, as well as advising on hedging arrangements to ensure a smooth financial close.
The Dentons team worked across its UAE, UK and Ireland offices to provide a seamless and round-the-clock service to Masdar – developing further on its successful financial close of the DEWA III refinancing in July 2022.
Banking and Finance partner Stephen Knight, based in Dentons’ Abu Dhabi office, commented: “We are delighted to have supported Masdar on the successful financial close of the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park. This transaction is a new milestone in the use of clean and renewable energy in the UAE, and another example of Dentons’ commitment to helping shape the future of the UAE, in this case in line with the country’s National Energy Strategy 2050.”