Iran’s Economic Council has approved a CNY 3.9 bn (c. USD 543 mn) foreign loan to develop 1.76 GW of solar power across the country, Tehran Times reported on Sunday. The project involves the construction of 586 solar power plants, each with a capacity of 3 MW.

Where’s the money going? The total cost is estimated at CNY 4.6 bn (c.USD 640 mn), with the foreign loan covering 85% of the cost. The remaining CNY 687.8 mn (USD 96 mn) will be funded as an advance payment by the Renewable Energy and Energy Efficiency Organization, which it should fund through electricity exports or other revenue streams.

REMEMBER- Iran plans to generate 30 GW of electricity from renewable sources over the next four years. Around 2.4 GW of this planned capacity is targeted to be online next summer, which would bring new additions in this time frame to 5 GW after including previously planned developments.

IN OTHER REGIONAL DEBT WATCH NEWS-

#1- Tabreed eyes USD 2 bn NCD issuance: District cooling firm Tabreed’s board will seek shareholder approval on 25 March to issue up to USD 2 bn in additional non-convertible debt instruments, according to a disclosure (pdf). The issuance may take place in one or more tranches, either directly or through a special-purpose vehicle. The firm had earlier confirmed that news of its plans to refinance debt is “accurate” and that it is “evaluating various refinancing options,” according to a separate disclosure (pdf) submitted to the DFM on Tuesday.

We knew this was coming: Tabreed CFO Adel Salem Al Wahedi had said the company plans to issue USD 1.2 bn in green bonds or sukuk to refinance debt this year, including USD 500 mn bonds maturing in October 2025 and USD 700 mn loan due in March 2025. It also completed a tender offer last April to repurchase USD 500 mn outstanding trust certificates that were due this year. The company has repurchased USD 240 mn in outstanding sukuk so far and currently has a BBB credit rating with a stable outlook from Fitch, Zawya reports.

#2- Oman secures financing for second phase of Sohar waste facility: Oman Environmental Services Holding Company (Be’ah) has inked an OMR 51 mn (c.USD 132.6 mn) financing agreement with Ahli Islamic to partially fund the second phase of its industrial waste treatment facility at Sohar Freezone, according to a statement on Thursday. The financing will support developing the hazardous waste treatment plant, upgrading physicochemical treatment tech, and building facilities for used oils and highly toxic waste treatment. It also covers installing smart storage tanks and advanced infrastructure to boost operational efficiency.

REMEMBER- Be’ah inked an agreement with Singapore-based environmental technology provider Tialoc and Omani construction company Al Ramooz National to commence the second phase last August. The facility is set to be completed this year, with the first phase — which is currently operational — including three landfills and an open and closed area for industrial waste.

#3- Jordan receives EBRD loan for electricity transmission project: Jordan’s National Electric Power Company (Nepco) has received a EUR 67.1 mn (c. USD 70 mn) financing package from the European Bank for Reconstruction and Development (EBRD) to boost the country’s grid to accommodate increased generation capacity, according to a press release from Thursday. The financing comprises a EUR 54.7 sovereign-guaranteed EBRD loan and a EUR 12.4 mn EU investment grant, alongside a EUR 2.2 mn technical cooperation grant to appoint a project implementation consultant for Nepco.

Where’s the money going?The funds will go towards constructing the Northern GreenSubstation Transmission (NGST) project and four new overhead transmission lines, including two 400 kV lines connecting substations in Samra and Amman West and two 132 kV lines connecting the Hasan Industrial and Jerash substations.

Sounds familiar? The EBRD said it was extending a USD 28.25 mn loan to Nepco for the NGST project last October.

#3- Egypt’s Arabian Cement Company (ACC) has secured a EUR 25 mn financing package from EBRD and EU to support the company’s decarbonization efforts, according to a press release from Thursday. The EU is also providing a “first loss risk cover” from its European Fund for Sustainable Development Plus, which offers risk-sharing facilities of up to EUR 40 bn to support Sustainable Development Goals projects in partner countries.

The details: ACC will use the money to expand its use of alternative fuel and improve energy efficiency, reducing some 130k tons of emissions annually. The company also plans to install a new energy-efficient hydrogen injection system — which would be the first in Egypt’s cement sector — to improve combustion efficiency, thereby decreasing fuel consumption and emissions.

REFRESHER- EBRD and UAE-based consulting firm A³&Co partnered to support ACC in developing a decarbonization roadmap back in 2023.

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