Legal deals of the week (Nov 30, 2020)

Clifford Chance and AS&H advise on Saudi Electricity Company’s SAR 167.92 billion Shari’ah-compliant subordinated perpetual financial equity-like instrument as part of Saudi Arabia’s wider electricity reforms

Clifford Chance and Abuhimed Alsheikh Alhagbani Law Firm (AS&H) advised Saudi Electricity Company (SEC) (the Company) on the conversion of the Company’s financial government liabilities into a SAR 167.92 billion (approx. USD45 billion) Shari’a compliant subordinated financial equity-like instrument with a redemption option as part of wider electricity sector regulatory reforms in Saudi Arabia.

The financial agreement between the Company and the Government represented by the Ministry of Finance is part of a series of other electricity sector reforms including regulatory and structural. This financial transaction is considered the world’s largest Shari’a compliant transaction to ever be executed.

The financial agreement and reforms will put SEC in a better financial position to meet all its financial obligations and will create a more sustainable capital structure for the Company. SEC is the largest electricity company in the MENA region and plays a crucial role in helping meet the growing demand for electricity in Saudi Arabia.

The Clifford Chance team was led by Clifford Chance partner and global head of Islamic Finance, Qudeer Latif, who commented, “We are delighted to have supported SEC on this transformative financial agreement. The financial agreement is key to enable SEC to move forward with an improved financial position to be able to meet growing demand for electricity in the Kingdom.”

The team was co-led by AS&H partner and head of banking and finance, Yasser Al-Hussain, and in addition comprised Ahmed Choudhry (counsel), Abdulkhaliq Elshayyal (senior associate) and Abdullah Alsugair (associate).

Stephenson Harwood advises Yellow Door Energy on USD50 million revolving construction facility deal

Stephenson Harwood LLP has advised Yellow Door Energy Limited (Yellow Door Energy) on a USD50 million revolving construction facility deal with Arab Petroleum Investments Corporation (APICORP). The financing will be used to develop solar photovoltaic plants across the MENA region, with a key focus on Jordan and Pakistan.

Yellow Door Energy is a UAE-based sustainable energy provider, which has more than 110 megawatts of solar assets currently operating, or under construction, in the UAE, Jordan, and Pakistan. The company, of which APICORP is a shareholder, has recently expanded its business into Saudi Arabia, Bahrain, and Oman.

“I am pleased to have led our team in successfully supporting Yellow Door Energy in its ambitions to expand its operations throughout the MENA region,” said Nijoe Joseph, partner, Stephenson Harwood. “The achievement of financial close is testament to Yellow Door Energy and APICORP’s vision and teams, notwithstanding the general uncertainty created by the Covid-19 pandemic.”

This financing enables Yellow Door Energy to continue developing its operations in solar energy and efficiency solutions across the region, and further supports its overall growth strategy. APICORP, established in 1975, is a multilateral development financial institution.

The Stephenson Harwood team was led by partner Nijoe Joseph, who was supported by senior associate Gaurav Jain and associates Kara Conneely and Chinar Zaidi.

Bracewell represents Fotowatio Renewable Ventures in Utility-Scale Battery Project in UK

Bracewell LLP represented Fotowatio Renewable Ventures in its second utility-scale battery storage project, in collaboration with UK developer Harmony Energy, which forms part of a strategic energy storage pipeline to be launched globally.

Construction of the 34 MW/68 MWh Contego project is set to start this month near Burgess Hill in West Sussex, United Kingdom. Once completed in 2021, the project will be one of the largest battery energy storage plants in the UK, with a system of 28 Tesla Megapack lithium-ion batteries and Tesla’s Autobidder AI software for real-time trading and control.

Bracewell lawyers involved in the transaction included partners Clint Steyn, Tom Swarbrick, Oliver Irwin and Alastair Young and associates Nicholas Neuberger, Oliver Phillips and Miles Tonkin.

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