SAFCO Ventures Secures $141.9 Million for Innovative SAF Project
Deal News | Dec 16, 2024 | White & Case
White & Case has successfully advised SAFCO Ventures on a combined debt and equity financing totaling US$141.9 million for Pakistan's first sustainable aviation fuel (SAF) facility. This landmark financing effort marks the first-of-its-kind project across the Middle East, Central Asia, and Asia-Pacific regions. Key financial backers include the Asian Development Bank, which provided senior debt financing through syndicated B-loans, and the International Finance Corporation, contributing a significant equity investment. The financing will aid in constructing and operating the SAF facility in Sheikhupura, Pakistan, utilizing Axens' innovative technology to convert waste vegetable oil into renewable fuels. With long-term offtake agreements, including one with Shell Eastern Trading, the facility is set to produce a significant portion of the global SAF output by 2024. The transaction highlights SAFCO Ventures' commitment to achieving net-zero by 2050 and advancing economic development and environmental goals in Pakistan.
Sectors
- Renewable Energy
- Aviation
- Finance
Geography
- Pakistan – The location of the SAF facility and a major focus of the project's economic and environmental impact.
- Middle East, Central Asia, Asia-Pacific – Regions highlighted for this being the first SAF project financing, indicating a broader geographical significance.
Industry
- Renewable Energy – The article discusses the financing and development of a sustainable aviation fuel (SAF) facility, which is part of the renewable energy sector.
- Aviation – The project relates to the production of sustainable aviation fuel, directly impacting the aviation industry through innovative fuel solutions.
- Finance – Involves significant financial components including debt and equity financing, highlighting the role of financial institutions in supporting energy projects.
Financials
- 141900000 – Total combined debt and equity financing for the SAF project.
- 86700000 – Total senior debt provided by the Asian Development Bank, with syndicated B-loans.
- 20000000 – Equity investment from the International Finance Corporation's own account.
- 10000000 – Additional investment from a climate-related blended finance program.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SAFCO Ventures | Target Company | Company | A company focusing on sustainable fuel projects, including the SAF facility in Sheikhupura, Pakistan. |
| Shell Eastern Trading (Pte) Ltd | Offtake Partner | Company | An entity that has secured a long-term supply agreement for SAF from the new facility. |
| White & Case LLP | Legal Advisor | Company | A global law firm advising SAFCO Ventures on the financing of the SAF project. |
| Asian Development Bank | Debt Financier | Company | Provided significant senior debt financing for the SAF project through B-loans. |
| International Finance Corporation | Equity Provider | Company | Contributed equity finance from its own account and a climate-related blended finance program. |
| Axens | Technology Provider | Company | Provides the patented technology to convert waste vegetable oil into renewable fuels. |