Ashurst has advised the lenders, The Export Import Bank of Korea (K-EXIM) and the commercial funders, Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation Europe Limited, on the successful closing of the Fujeij wind farm project in Jordan, which reached financial close on 16 December 2016.
The 89.1 MW plant located at Fujeij, Jordan is to be developed by Korea Electric Power Corporation (KEPCO) as sole sponsor. The plant will be built by Vestas under a turnkey EPC contract and will deploy 27 Vestas V126 3.3MW model, IEC S class wind turbine generators, and be maintained post construction under a long-term Service and Availability Agreement with Vestas. Commercial operation is scheduled to occur in October 2018. The facility's entire output will be sold to NEPCO under a 20 year power purchase agreement.
The funding comprises a K-EXIM direct loan of US$ 64 million, with a US$ 52 million K-EXIM covered facility being provided by Mizuho and SMBC. There are also equity bridge facilities totalling US$ 81 million being funded by the commercial banks. Arab Bank is acting as onshore account bank and onshore security agent.
The cross-border London/Dubai Ashurst team was led by head of utilities David Wadham with partner David Charlier, who were assisted by counsel Mhairi Garcia, senior associates Pete Grayson and Brad Sandford and associates Grant Batten, Yasmeen Ghali and Krisha Somaiya. Al Sharif Zu'bi (Jumana Toukan) acted as lenders' Jordanian counsel and SMBC acted as financial advisor to KEPCO.
Commenting on the deal, David Wadham said:
"We are pleased to have had the opportunity to work again with K-EXIM, Mizuho and SMBC who are long-standing clients in the IPP sector and to have supported KEPCO on another of its Middle East projects: we have now worked with KEPCO and K-EXIM and these same commercial funders on several successful IPP projects in the Middle East, including IPP3 (Jordan 2013) and Shuweihat S3 (Abu Dhabi 2011). We are seeing significant activity in the Jordan renewables sector and it is particularly pleasing to have been involved in a wind project in this region."
