Financing for the Riyadh PP11 independent power project (IPP) is moving ahead with financial close anticipated within the next month, say bankers working on the deal.

Saudi Electricity Company (SEC) recently named France’s GDF Suez and the local Al-Jomaih Group as preferred bidder on the project (MEED 2:3:10).

The project is set to cost around $2.2-2.3bn in total, with about $1.8 billion to be covered in debt.

Roughly half of the debt is to be provided in US dollars, while the remainder will be Saudi riyal-denominated.

The following banks will provide $400m in an international tranche:

• Credit Agricole CIB (France)
• Standard Chartered (UK)
• Societe Generale (France)
• KfW Bankengruppe (Germany)
• Export Development Canada (Canada)

The Export-Import Bank of the United States (US Ex-Im) is to put forward about $400-420m in debt.

The following local banks will supply around $900 million (in Saudi riyals):

• Samba
• Alinma Bank
• Banque Saudi Fransi

The project is committed to reaching financial close by 31 May. However, sources close to the deal have indicated they expect this to be completed significantly sooner.

The gas-fired power plant will have a capacity of 2,000MW and will use natural gas feedstock with Arabian super light crude as a backup fuel.