Barakah One, the company behind UAE’s Barakah Nuclear Energy Plant, has successfully completed the refinancing of the transformational project, working with key banking institutions in the UAE.
Barakah One is a joint venture between the Emirates Nuclear Energy Corporation (ENEC) and the Korea Electric Power Corporation (KEPCO). It was financed in the beginning under the loan facilities extended by the Export-Import Bank of Korea (KEXIM), the export credit agency of South Korea.
The full outstanding balance under the loan facilities, originally committed in 2016 for the construction and development of the Barakah Plant, has now been refinanced through a competitive market process to two leading UAE banks – Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB).
Barakah has already had a transformational impact on the UAE’s energy landscape, spearheading the rapid decarbonisation of the UAE’s power sector.
Three units of the Barakah Plant are already operational, with the fourth unit recently starting its operational readiness phase.
Once commercially operational, Unit 4 will raise Barakah Plant’s total clean electricity generation capacity to 5.6GW, equivalent to 25 percent of the UAE’s electricity needs, and deliver more than 40TWh of clean electricity per year.
The refinancing reflects a natural progression in the development of the Barakah Plant as the project continues to progress through to full, four-unit commercial operations. It also demonstrates strong ongoing investor confidence in the project and how it is creating economic value in the UAE.
Barakah One: Successful refinancing achievement
Mohamed Ibrahim Al Hammadi, ENEC’s Managing Director and Chief Executive Officer, said: “We are pleased that Barakah One Company has successfully completed the refinancing of the Barakah Plant, a flagship project for the UAE’s sustainable development. We have showcased a new model to the world for nuclear developments, demonstrating that new nuclear projects like Barakah are bankable, can be delivered in a timely manner, while continuing to meet the highest standards of safety and quality.
“We are proud to have two of the largest banks in the UAE providing the financing for our program, demonstrating the far-reaching benefits Barakah brings in stimulating sustainable economic growth.”
Nasser Al Nasseri, CEO of Barakah One Company, added: “We appreciate the role KEXIM has played during the development phase of the Barakah Plant, and as we now transition to full operations and move to the next phase, we are delighted by the confidence demonstrated from ADCB and FAB as we look ahead to the next sixty years of producing clean electricity for the UAE.”
The Barakah Plant is a major contributor to UAE’s Net Zero by 2050 goals, generating clean electricity around the clock while preventing millions of tons of carbon emissions.
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