ABU DHABI, UAE, 4 March 2024: Dentons announced that it has advised Masdar on its successful financial close concerning the 1,800MW solar photovoltaic independent power project, DEWA Phase VI, situated in Dubai. Making the announcement through a Press release, Dentons said the project is the sixth phase in the development of the Mohammed bin Rashid Al Maktoum Solar Park.

Dentons said the project would sell its entire power output to DEWA, the sole buyer of power output in Dubai, under a long-term PPA. The sixth phase of the project, Dentons said, is set to be operational in stages, and added that it would power over half a million residences while reducing carbon emissions by 2.36 million tonnes annually and will increase the total production capacity to 5,000MW by 2030, making it the largest solar park in the world.

Dentons said it played a pivotal role in advising Masdar throughout the transaction, including negotiations with DEWA, the EPC contractor, the O&M contractor and a syndicate of financiers. Furthermore, Dentons said, the financing was structured as a dual tranche syndicated conventional and Islamic Ijara facility. 

Dentons said Standard Chartered Bank acted as documentation bank, global agent, conventional facility agent and account bank; Abu Dhabi Islamic Bank PJSC led on the Islamic structure, which needed to be AAOFI/UAE Central Bank compliant; First Abu Dhabi Bank PJSC acted as Global Green Facility Coordinator; HSBC Bank Middle East Limited acted as Regional Green Facility Coordinator, and hedging was provided by First Abu Dhabi Bank PJSC and Abu Dhabi Islamic Bank PJSC. Dentons added that Abu Dhabi Commercial Bank PJSC, Commercial Bank of Dubai PSC, First Abu Dhabi Bank PJSC, HSBC Bank Middle East Limited and Standard Chartered Bank acted as Conventional Mandated Lead Arrangers and Lenders, with Abu Dhabi Islamic Bank PJSC and Warba Bank KSCP acting as Islamic Mandated Lead Arrangers and Participants. Dentons also said that it assisted from the term sheet negotiation stage to the facility and security structuring, as well as advising on hedging arrangements to ensure a smooth financial close.

Stephen Knight, Banking and Finance partner, Dentons, Abu Dhabi, said: “We are delighted to have supported Masdar on the successful financial close of the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park. This transaction is a new milestone in using clean and renewable energy in the UAE, and another example of Dentons’ commitment to helping shape the future of the UAE, in this case in line with the country’s National Energy Strategy 2050.”