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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Korea Electric Power Corporation (KEPCO) announced on July 16 that it has successfully secured a total of $4.04 billion (KRW 5.5 trillion) in project financing (PF) for two major power projects in Saudi Arabia: the Sadayir Solar Power Project and the Luma 1 & Nairiyah 1 Gas-Fired Combined Cycle Projects.
The financing was arranged without any guarantees from KEPCO, relying instead on the project companies’ own creditworthiness and revenue potential. This marks a significant milestone in the projects' development, allowing them to move into full-scale construction following initial groundwork.
Despite global uncertainties and financial market volatility, KEPCO successfully attracted funding under competitive terms from a consortium of lenders including the Export-Import Bank of Korea and several international commercial banks.
The Sadayir Solar Power Project, awarded to KEPCO through a competitive bidding process in October last year, is a 2-gigawatt (GW) mega-scale renewable energy initiative—the largest single solar project in Saudi Arabia to date. KEPCO expects to generate approximately KRW 540 billion ($390 million) in revenue over the 25-year contract period.
The Luma 1 and Nairiyah 1 gas-fired power plants, secured in November 2023, represent a combined capacity of 3.8 GW. These large-scale facilities are forecast to generate KRW 4 trillion ($3 billion) in revenue over the same 25-year period.
A KEPCO official stated, “These are the 22nd and 23rd overseas projects we have completed using PF structures, in cooperation with Korean export credit agencies. This achievement underscores KEPCO’s 30+ years of experience as a global power project developer and our leadership in securing international project financing among Korean companies.”
KEPCO anticipates these landmark projects will significantly bolster its presence in the Middle Eastern power market and further solidify its role as a key player in global energy development.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
