Clifford Chance_Dentons

Masdar Secures Funding for Dubai Solar Park. The advisors

International law firm, Dentons has provided legal counsel to Masdar, facilitating the successful financial close of the 1,800MW solar photovoltaic project, known as DEWA Phase VI, within Dubai’s Mohammed bin Rashid Al Maktoum Solar Park. This milestone marks the sixth phase of the prestigious solar park’s development.

DEWA Phase VI, a significant renewable energy initiative, is set to sell its entire power output to DEWA under a long-term Power Purchase Agreement (PPA). With plans for staged operational deployment, the project is poised to power more than half a million residences, significantly curbing carbon emissions by an estimated 2.36 million tonnes annually. By 2030, it is expected to bolster the solar park’s total production capacity to an unprecedented 5,000MW, positioning it as the world’s largest solar park.

Dentons has advised Masdar throughout the transaction (from bid phase all the way to a successful financial close), including negotiations with DEWA, the EPC contractor (on a complicated contractual EPC arrangement), the O&M contractor and a syndicate of financiers.

The MBR Solar Park, slated to be the largest single-site solar park globally, plays a pivotal role in supporting the UAE’s renewable energy goals. Upon completion, it is expected to reduce over 6.5 million tonnes of carbon emissions annually, aligning with Dubai’s Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy.

International law firm Clifford Chance has provided legal counsel to the involved syndicate of banks backing Masdar’s financial close on the Solar Park project.

The financing was structured as a dual tranche syndicated conventional and Islamic Ijara facility. Standard Chartered Bank acted as documentation bank, global agent, conventional facility agent and account bank. Abu Dhabi Islamic Bank led on the Islamic structure, which needed to be AAOFI/UAE Central Bank compliant. First Abu Dhabi Bank acted as Global Green Facility Coordinator and HSBC Bank Middle East Limited acted as Regional Green Facility Coordinator. Hedging was provided by First Abu Dhabi Bank and Abu Dhabi Islamic Bank. Abu Dhabi Commercial Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, HSBC Bank Middle East Limited and Standard Chartered Bank acted as Conventional Mandated Lead Arrangers and Lenders, with Abu Dhabi Islamic Bank and Warba Bank KSCP acting as Islamic Mandated Lead Arrangers and Participants. Dentons 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.

The advisors

The Dentons team worked across its UAE, UK and Ireland offices to provide a seamless and round-the-clock service to Masdar – developing further on its successful financial close of the DEWA III refinancing in July 2022.

The Dentons team was led by partners Stephen Knight (pictured left) and Colm O’Huiginn (pictured center), with assistance from counsel Graham Richmond, senior associates Kanishka Singh, Annabel Vincent and Ahmed El-Bayouk, associate Najeeb Gill, legal consultant Nikhil Pareek and legal assistant Nisha Gupta. The hedging workstream was led by partner Matthew Sapte and supported by senior associate Marcus Ang and associate Giuliano Roberti. The corporate workstream was led by partner Iain Black, supported by associates Lamia Al-Lamki and Kislay Kumar, and paralegals Faris Al Ramahi and Manal Abu Issa.

The Clifford Chance team was led by Richard Parris (Partner) and Jeremy Barker (Counsel, pictured right) and they were supported by a global team comprising of Vany Attarian (Senior Associate) and Tanvi Pahwa (Associate) on the finance workstream, Inaamul Laher (Partner) and Leo Faingata’a (Associate) on the construction workstream and Anne Drakeford (Partner) and Arshak Mkrtchyan (Senior Associate) on the hedging workstreams.