PIF Secures Record-Breaking $17bn Senior Unsecured Term Loan

An agreement to establish the largest solar photovoltaic plant in the Middle East, in Makkah, west Saudi Arabia (SPA)
An agreement to establish the largest solar photovoltaic plant in the Middle East, in Makkah, west Saudi Arabia (SPA)
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PIF Secures Record-Breaking $17bn Senior Unsecured Term Loan

An agreement to establish the largest solar photovoltaic plant in the Middle East, in Makkah, west Saudi Arabia (SPA)
An agreement to establish the largest solar photovoltaic plant in the Middle East, in Makkah, west Saudi Arabia (SPA)

Badeel has announced a partnership to establish the largest solar photovoltaic plant in the region, while Saudi Arabia’s Public Investment Fund (PIF) announced that it has secured a $17 billion seven-year senior unsecured term loan (63.7 billion Saudi riyals).

The loan is the largest-of-its-kind general corporate-purpose loan worldwide.

While the new transaction recorded the support of 25 financial institutions across Europe, America, the Middle East, and Asia, the $11 billion loan of 2018 was supported by 15 financial institutions.

The new loan also aligns well with the PIF’s medium-term capital raising strategy as well as its 2022 Annual Capital Raising Plan.

“It is a significant achievement for PIF, raising a record-sized term facility in the longest tenor ever for a loan of its size that is subscribed to by an unprecedentedly diversified number of lenders. PIF will continue to explore a variety of debt funding sources as it delivers on its strategic objectives,” said the Head of the Global Capital Finance Division at PIF Fahad AlSaif in a statement.

Meanwhile, Badeel and ACWA Power signed an agreement to develop the largest solar photovoltaic plant across the Middle East and North Africa in Makka, in the west of Saudi Arabia.

The 2,060 MW solar photovoltaic plant will be built in Al Shuaibah, Makkah province, and is expected to begin commercial operations by the fourth quarter of 2025.

Badeel will jointly own the project with ACWA Power, with both companies holding a 50 percent equity stake each.

The project will be executed through a newly formed joint company called Shuaibah Two Electrical Energy Co..

In this regard, the Shuaibah Two Electrical Energy Co. signed a power purchase agreement with the Saudi Power Procurement Co..

The project is part of Saudi Arabia’s energy transition strategy, highlighting how a giga-scale development in sustainable energy will play a key role in translating Vision 2030 goals.

Yazeed A. Al-Humied, deputy governor and head of MENA Investments at PIF, said: "This marks a key achievement toward PIF’s commitment to developing 70 percent of Saudi Arabia’s renewable energy by 2030.

“Utilities and renewables are one of PIF’s priority sectors as part of its domestic strategy, which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying revenue sources.”

“Saudi Arabia continues to accelerate its ambitious plans for diversifying its energy mix to include renewable energy. It is a great honor to partner with Badeel and SPPC in developing this milestone project which will set a benchmark for sustainable energy development in the region,” said Mohammad Abunayyan, chairman of ACWA Power.

He said solar power is a key component in unlocking positive economic, environmental, and social outcomes, adding: “We remain committed to developing local capabilities in technology, supply chain, and talent and ensure they are realized to their fullest potential.”

Badeel and ACWA Power will build, own, and operate Al Shuaibah 2 facility and the electricity produced will be sold to SPPC. The project is expected to power 350,000 homes.

Shuaibah 2 is ACWA Power’s sixth solar energy facility in Saudi Arabia, with its portfolio comprising 13 power, water desalination, and green hydrogen plants.

Badeel and ACWA Power are also developing the Sudair Solar PV 1500 MW project; which was the first cornerstone renewable energy project in PIF’s program.



Italy Forges on with World's Largest Suspension Bridge

(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)
(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)
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Italy Forges on with World's Largest Suspension Bridge

(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)
(FILES) A general aerial view shows the Sicilian coast towards Cape Torre Faro, over the Strait of Messina, taken from the outskirts of the town of Scilla, in Calabria region in southern Italy, on July 7, 2020. (Photo by Andreas SOLARO / AFP)

Italy hopes to begin constructing the world's largest suspension bridge connecting Sicily to the Italian mainland this summer amid widespread skepticism that it will ever be built.

The 13.5-billion-euro ($15.3-billion) project would carry trains and six lanes of traffic, allowing cars to cross the Strait of Messina in 15 minutes, AFP reported.

Giorgia Meloni's hard-right government hopes to boost the economy of the impoverished region, although critics say there are better ways to do this -- and many believe that after decades of false starts, the bridge will never actually happen.

The choppy waters between the eastern tip of Sicily and the western edge of the region of Calabria are legendary as the place where monsters Scylla and Charybdis terrified sailors in Homer's epic poem "The Odyssey".

These days the challenges are more prosaic, from winds of more than 100 kilometers an hour (62 mph) to the real risk of earthquakes in a region that lies across two tectonic plates.

The government says the bridge will be at the cutting edge of engineering, with the section suspended between its two pillars stretching 3.3 kilometers, the longest in the world.

But critics point to a long history of public works announced, financed and never completed in Italy, whether due to corruption or political instability, resulting in enormous losses for taxpayers.

"The public does not trust this political class and these projects that become endless construction sites," said Luigi Storniolo, a member of protest group No Ponte (No Bridge).

Infrastructure Minister and Deputy Prime Minister Matteo Salvini, one of the main champions of the project, insists it will be a game-changer for the local economy.

"The bridge will be a catalyst for development," he said on a recent visit to Reggio di Calabria, the city where the bridge will begin.

The government hopes to boost trade in Sicily, which currently suffers from an "insularity cost" of around 6.5 billion euros a year, according to regional authorities.

Meloni's ministers are expected to give their final approval to the project -- which Rome will fund -- later this month, and Salvini insists construction will begin this summer.

But work had already been announced for the summer of 2024, before being postponed -- a common theme in the history of the bridge, the idea of which dates back to the unification of Italy at the end of the 19th century.