Clifford Capital supports Sembcorp and ADWEA in their landmark project bond issuance for the Fujairah 1 Independent Water and Power Plant
Clifford Capital is a cornerstone investor in the Fujairah 1 IWPP USD400m project bond issue maturing in 2035, which closed in December 2017 alongside a USD713m bank loan refinancing.
The electricity generation and seawater desalination plant is ultimately jointly owned by Abu Dhabi Water and Electricity Authority and the Abu Dhabi National Energy Company (60%) and Sembcorp Utilities Pte Ltd (40%). The plant has been operating since 2004 and in 2015 a new Reverse Osmosis desalination plant was completed bringing its total power and desalination capacity to 760MW and 130MIGD respectively. A subsidiary of Sembcorp Utilities is operator of the plant, which has shown high reliability and strong performance since operations commenced.
The Project generates revenues pursuant to a long-term contract with an Abu Dhabi government owned entity. The strength of the Sponsors the Operators and the consistently strong operating performance have resulted in the transaction being awarded a high A2 / A- credit rating by Moody's and S&P respectively.
This transaction is testament to the strong institutional investor appetite for long dated project financing, providing an attractive alternative source of debt capital for developers for projects that have a successful operational track record.