Abu Dhabi solar firm Sweihan seeks to raise over $700mln in green bonds

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Abu Dhabi solar firm Sweihan seeks to raise over $700mln in green bonds

Sweihan PV Power Company, an Abu Dhabi-based renewable energy firm that primarily focuses on solar energy, had been brewing off an option to raise more than $700 million in sales of amortised green bonds, an investor presentation had revealed.

Having rolled out for commercial purposes back in the 2019s, Sweihan currently owns the largest solar facility in United Arab Emirates, the Noor Abu Dhabi Solar Plant. Nevertheless, a controlling 60 per cent stake in Sweihan is held by Abu Dhabi’s TAQA, 98.6 per cent owned by the Government of Abu Dhabi, while China’s JinkoSolar and Japan’s Marubeni Corp held 20 per cent stakes each.

UAE’s solar company Sweihan seeks to raise $700 million in green bonds

On top of that, according to one of the banking sources familiar with the issue, Sweihan’s issuance of US Dollar-denominated fixed rate green bonds has been specifically designed for backing climate-related or environmental projects, while the bonds would be matured on January 31, 2049 and would include an option of a 15-year weighted average lifespan, repayments for the latter would be subject to market conditions.

Leading US lender Citi has been hired as a leading global coordinator for Sweihan’s green bond issuance, while HSBC alongside MUFG had been hired as joint global coordinators. Nonetheless, Sweihan would initially make an offer to issue a $728 million worth of green bonds, however, the issuance size could be ranged between $710 million and $750 million, added the sources.

Besides, according to the investor presentation unveiled on Monday, about an 80 per cent of $728 billion, which Sweihan is expecting to raise at its green bond sales, would be used to repay bank loans, while a 5 per cent of the amount fetched in bond issuance would be disbursed among investors and a 12 per cent would be paid off as transaction cost.

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