$3.84 B for subsea transmission network project in UAE
Korea, Seoul: Korea Electric Power Corporation (KEPCO) has raised $3.84 B financing to complete the project to build a subsea transmission network in the UAE.
Image source: Pulse News
Korea, Seoul: Korea Electric Power Corporation (KEPCO) has raised $3.84 B financing to complete the project to build a subsea transmission network in the UAE.
The construction project is led by a consortium comprising KEPCO and its Japanese and French partners.
According to the state utility firm, KEPCO-led consortium has signed $3.1 B loan agreements with multiple financial institutions last week, without the security of the parent companies.
The bulk of $1.2 B would come from the Export-Import Bank of Korea and the rest from global commercial lenders such as Japan Bank for International Cooperation (JBIC).
Another $740 M would be put up through equity investment by the KEPCO consortium and Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) of UAE.
The UAE subsea transmission network project is KEPCO’s first overseas electrical grid investment project and the first project in the Middle East and North Africa that applies HVDC technology. The deal involves 35 years of system operation after construction of the subsea cable and conversion station with 3.2 GW capacity is complete by 2025.
“The latest fund raising has allowed us to enter actual construction stage as we have finalized contract agreement and approval,” said an unnamed official from KEPCO. “The UAE transmission network project will pave the way for expansion in other overseas electric grid investment projects.”
Source: Pulse News
#financing#HVDC technology#KEPCO#subsea transmission network#UAE