Ibaad Hakim

White & Case with Safco on $141.9m financing for SAF

White & Case advised Safco Ventures on a $141.9 million combined debt and equity raise for the design, construction, and operation of a sustainable aviation fuel (SAF) facility in Sheikhupura, Pakistan. This will be the first SAF project financing in the Middle East, Central Asia, and Asia-Pacific regions.

Earlier this year, Safco Ventures secured a long-term offtake agreement with Shell Eastern Trading (Pte), committing to supply up to 145,000 tons of SAF annually once the facility is operational. This accounts for approximately 10 percent of anticipated global SAF production in 2024. Safco Ventures will, with the support of international and local contractors, build and operate the SAF facility. The project will use technology from French Group Axens.

The debt financing includes a total of US$86.7 million senior debt from the Asian Development Bank, including syndicated B-loans provided by The Emerging Africa & Asia Infrastructure Fund (EAAF). Owned by the Private Infrastructure Development Group and managed by NinetyOne, and ILX, the EAAF is an Amsterdam-based emerging market asset manager focused on the United Nations’ Sustainable Development Goals and climate private debt strategies.

The equity contribution was provided by the International Finance Corporation. Of the total equity contribution, US$20 million comes from IFC’s own account, with an additional investment of up to US$10 million from a climate-related blended finance program recently launched in partnership with the UK Foreign, Commonwealth & Development Office.

The team

The White & Case team which advised on the transaction was led by partners Ibaad Hakim (Abu Dhabi, pictured) and Kamran Ahmad, Mark Richardson (both London) and included associates Elliott Hunt (Abu Dhabi) Ryan Gawrych, Asad Khan, Max Gueli, Neeraja Chemburkar, Miguel Bovill Rose (all London), and Alvansa Vickya (Jakarta).

paolo.cannazza@lcpublishinggroup.com

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