Sponsored by TotalEnergies, Masdar (Abu Dhabi Future Energy Company), and the Abu Dhabi Retirement Pensions & Benefits Fund, Shams Power is the first operational utility-scale CSP plant in the MENA region, underscoring the UAE’s leadership in clean energy innovation.
Tribe Infrastructure Group managed the refinancing process with a multi-phased approach, ensuring alignment with shareholder objectives and market conditions.
Tribe’s Role
Tribe employed a multi-phased approach to successfully manage the refinancing of Shams Power. This process—encompassing Market Sounding and Analysis, Recommendation and Strategy Development, Execution of Refinancing and Financial Optimisation, and Stakeholder Engagement—ensured alignment with shareholder objectives and market conditions while delivering a long-term financial solution.
Market Sounding and Analysis
- Conducted a comprehensive review of project documents, financial models, and financing agreements to fully understand the project’s structure and financial standing.
- Prepared and distributed teasers for market sounding, engaging with a wide range of potential lenders across banking and capital markets.
- Collected and evaluated feedback from potential participants including banks, institutional investors and DCM desks, assessing key terms such as pricing, tenor, covenants, processes and intercreditor structures.
- Compiled a comparative analysis of multiple feasible financing plans to guide effective decision-making.
- Refreshed and updated analysis over time, taking into account changes due to the volatile interest rate environment.
Recommendation and Strategy Development
- Used market insights to prepare a detailed Proposed Debt Financing and Hedging Report, offering tailored recommendations on refinancing strategies, hedging mechanisms, and potential finance providers.
- Identified and mitigated execution risks while ensuring proposed solutions were bankable and beneficial to Shams Power and its shareholders.
- Highlighted the anticipated impacts of refinancing on cash flow, earnings, and other shareholder metrics.
Execution of Refinancing and Financial Optimization
- Negotiated favourable fixed margins based on Shams Power’s strong operational history to secure advantageous terms.
- Designed alongside legal counsel the transaction steps involved with executing an Amendment and Restatement of the existing facilities, allowing for an orderly transfer of exiting lenders’ exposures and onboarding of new lenders into the process.
- Transitioned existing loan and hedges from LIBOR to SOFR as part of Amendment & Restatement process
- Restructured interest rate swaps taking into account the requirements of new and existing lenders as well as the optimal cashflow and earnings impacts for Shareholders.
- Completely replaced financial model with a new operational model integrated with Shams Power’s systems allowing the Company to streamline reporting, forecasting, and integration of historical data via one bespoke tool.
Pete McCreanor, CEO, Tribe Infrastructure Group
“This successful refinancing of Shams Power highlights our commitment to delivering tailored financial solutions that align with our clients’ strategic goals. Shams is a landmark renewable energy project, and we are proud to have played a pivotal role in its journey towards long-term value creation and sustainability leadership.”
Chris Patt, Executive Director, Tribe Infrastructure Group
“Our work on the Shams refinancing demonstrates Tribe’s ability to navigate complex financial landscapes while presenting a range of innovative solutions. By aligning our clients’ objectives with the various identified refinancing options, we ensured an efficient, future-proof refinancing structure that strengthens Shams Power’s position as a regional renewable energy pioneer.”
Summary
Tribe successfully guided Shams through the entire refinancing process, leveraging a blend of market expertise, stakeholder collaboration, and financial restructuring to deliver a solution that maximised shareholder value while ensuring long-term project viability.
About Tribe
Tribe Infrastructure Group (Tribe) is focused on realising national ambitions through innovative financing and development of critical infrastructure.
Headquartered at the Abu Dhabi and with offices in London, Riyadh, Manila and Sydney, Tribe operates as an independent and agile partner, strongly grounded in responsible value creation.
Tribe Advisory is the proprietary financial services arm of Tribe Infrastructure Group. Tribe Advisory holds a category 4 licence and is supervised and regulated by the Financial Services Regulatory Authority at the Abu Dhabi Global Market..
