Abu Dhabi-based Taqa, or the Abu Dhabi National Energy Co., said in a statement today that Jorf Lasfar Energy Company, its wholly owned subsidiary, had secured $1.4bn in financing for expansion of its power plant in Morocco.
In a statement posted on the Abu Dhabi Exchange, Taqa said Jorf Lasfar “has signed financing arrangements for $1.4 billion equivalent of 16-year, multi-currency non-recourse project financing for the 700 MW expansion of Taqa’s Jorf Lasfar coal-powered power complex in Morocco.”
Taqa added Jorf Lasfar is the largest coal-fired power complex in the Middle East and North Africa (Mena) region, and the first independent power producer (IPP), in Morocco.
“The expansion is a key infrastructure project for Morocco’s energy strategy intended to meet the needs of ONEE (Office National de l’Electricité & de l’Eau Potable) and to increase the country’s installed electricity generation capacity. The 700 MW expansion will bring Jorf Lasfar’s gross capacity to 2,056 MW,” Taqa said in the statement.
BNP Paribas, Société Générale and Standard Chartered Bank were the mandated lead arrangers for the international debt facilities, while Morocco’s Banque Centrale Populaire (BCP) was the mandated lead arranger for the Moroccan dirham credit facilities, representing approximately 40 per cent of the total debt, Taqa said.
In addition, Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and Export-Import bank of Korea (Korea Eximbank) are to provide direct loans and loan guarantees for more than 50 per cent of the total project debt, the statement said, adding that this was the first time that the Japanese and Korean credit agencies have participated in a project finance transaction in Morocco.