Bee’ah, the Middle East’s sustainability pioneer, and Masdar, the Abu Dhabi Future Energy Company, were recognized as the winners of the Structured Loan Deal of the Year Award at the Bonds, Loans & Sukuk Middle East Awards for their financing of the UAE’s first waste-to-energy project. The award was presented during a ceremony held on the 6th of November 2018, as part of the prestigious Project, ECA & Structured Finance Conference conducted in Dubai.
Hosted by GFC Media, a leading organizer of financial conferences in the Middle East, the Bonds & Loans Awards recognize the outstanding efforts of issuers, borrowers and market professionals in landmark transactions, and celebrates excellence in the Middle Eastern and Islamic Capital Markets.
The Structured Loan Deal of the Year Award was presented to Bee’ah and Masdar for the outstanding efforts of teams from both entities in procuring the term loan of USD 162 million, on a Soft Mini-Perm Structure, to finance the Sharjah Waste to Energy Facility. The deal is the first of its kind in the region, bringing together a consortium of 5 banks to finance the project on a non-recourse basis.
The lenders to the project were Abu Dhabi Fund for Development (ADFD), the leading national entity for development aid; Abu Dhabi Commercial Bank (ADCB); Siemens Financial Services; Sumitomo Mitsui Banking Corporation (SMBC); and Standard Chartered Bank (SCB).
HE Khaled Al Huraimel, Group CEO of Bee’ah, said “We are proud to receive this award which recognizes the cumulative efforts of several entities towards establishing one of the region’s most iconic projects. As the first zero-waste solution in the Middle East, the Sharjah Waste to Energy Facility is an innovative project; which required even greater innovation in addressing its financing. This award recognizes the hard work and capabilities of all the exceptional individuals who came together to develop a well-structured and viable solution to achieve financial closure of this project.”
The 20-year loan will be used to construct the Sharjah Waste to Energy Facility, which is being managed by the Emirates Waste to Energy Company (EWEC), a joint venture formed last year by Bee’ah and Masdar. The 30MW plant, which when operational, will treat more than 300,000 tonnes of municipal waste a year, that was previously diverted to landfill sites.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “Receiving the prestigious Structured Loan Deal of the Year Award further illustrates the strength of the financial community’s confidence in the commercial viability of sustainable waste management solutions and the international appeal of Sharjah as an investment destination. The award is richly deserved recognition of the professionalism and teamwork of all the partners involved in a truly ground-breaking project.”
“From the point of view of the capital markets, the loan structure is easy to understand and replicate, a key factor in winning the award and one which will attract more clean-tech investment into the UAE and wider region in the future,” Al Ramahi added.
Located within Bee’ah’s Waste Management Center in Sharjah, the Sharjah Waste to Energy Facility will process more than 37.5 tonnes of municipal solid waste (MSW) per hour to generate electricity sustainably. Operating at full capacity, it will contribute significantly to reaching the UAE’s target of diverting 75 per cent of its solid waste from landfills by 2021, as well as Sharjah’s zero-waste-to-landfill goal.