NEOM Green Hydrogen Co. secures financing worth $8.5b
The
NEOM Green Hydrogen Co. has signed finance agreements worth $8.5b with several
institutions to help finance its clean energy facility.
The
company has a 30-year green ammonia offtake contract with Air Products, which
comprises transportation, construction, installation, testing, commissioning,
and operation and maintenance of the facility.
NGHC
is a joint venture between Saudi Arabia’s Public Investment Fund-backed power
generation, renewable energy, and water desalination firm Air Products, and
NEOM Co, and ACWA Power – which holds a 33.3 percent equity stake.
The
total investment cost is funded by a combination of long-term debt and equity.
It
is divided into $5.85 billion senior debt and $475
million mezzanine debt facilities, both of which are arranged on a
non-recourse project finance basis.
The
arrangement includes $1.5 billion from the National Development Fund
on behalf of the National Infrastructure Fund.
In
addition to this, the arrangement also includes $1.25 billion in the
form of Saudi riyal-denominated financing from Saudi Industrial Development
Fund.
Source: https://menafn.com/
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