The Barakah One Company PJSC (Barakah One) - a joint-venture between the Emirates Nuclear Energy Corporation (ENEC) and the Korea Electric Power Corporation (KEPCO) - has successfully completed the milestone refinancing of the Barakah Nuclear Energy Plant, working with key banking institutions in the UAE.
Barakah One has refinanced the full outstanding balance under the loan facilities extended by the Export-Import Bank of Korea (KEXIM), the export credit agency of South Korea. Such facilities were originally committed in 2016 in connection with the construction and development of the Barakah Plant. The KEXIM loan facilities have been refinanced through a competitive market process resulting in the selection of two leading Emirati banks, Abu Dhabi Commercial Bank PJSC (ADCB) and First Abu Dhabi Bank (FAB). This refinancing demonstrates not only the strong ongoing investor confidence in the project but also how the Barakah Plant is creating even further economic value in the UAE beyond the positive impact on the local supply chain and creation of job opportunities for UAE Nationals.
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. Barakah has three reactors currently generating abundant, clean electricity for the UAE, with the fourth unit recently starting its operational readiness phase.
His Excellency Mohamed Ibrahim Al Hammadi, ENEC’s Managing Director and Chief Executive Officer, added: “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, further demonstrating the far-reaching benefits Barakah brings in stimulating sustainable economic growth”
Nasser Al Nasseri, CEO of Barakah One Company, said: “We appreciate the role K-EXIM 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 fromADCB and FAB as we look ahead to the next sixty years of producing clean electricity for the UAE through the Barakah Plant.”
The Barakah Plant is a major contributor to the nation’s Net Zero by 2050 goals, generating clean electricity around the clock, whilst preventing millions of tons of carbon emissions. ENEC is now focused on driving innovation in new technologies including Small Modular Reactors (SMRs), clean molecules, synthetic fuels and clean hydrogen, to support the UAE’s continued clean energy transition.
Barakah has already had a transformational impact on the UAE’s energy landscape, spearheading the rapid decarbonization of the UAE’s power sector. Once commercially operational, Unit 4 will raise the Barakah Plant’s total clean electricity generation capacity to 5.6GW, equivalent to 25 per cent of the UAE’s electricity needs, delivering more than 40TWh of clean electricity per year.