Global firm advises SAFCO Ventures on Pakistan’s SAF facility
Global law firm White & Case LLP has advised SAFCO Ventures on securing
a groundbreaking US$141.9 million financing package—comprising both debt and
equity—for the design, construction, and operation of Pakistan’s first
sustainable aviation fuel (SAF) facility in Sheikhupura.
"This milestone project represents the first SAF project financing in
the Middle East, Central Asia, and Asia-Pacific regions," said Kamran Ahmad,
White & Case partner and co-leader of the transaction. "Our
involvement underscores our firm’s commitment to supporting innovative energy
transition and circular economy projects. This project reflects our capability
to deliver financing solutions for cutting-edge, net-zero initiatives."
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to finance Pakistan’s first sustainable aviation fuel facility
A Landmark Deal for SAF Development
SAFCO Ventures previously secured a long-term offtake agreement with Shell
Eastern Trading (Pte) Ltd, committing to supply up to 145,000 tons of SAF
annually upon the facility’s completion. This volume represents approximately
10% of anticipated global SAF production in 2024.
The SAF facility will utilize advanced technology from France-based Axens to
convert waste vegetable oil feedstock into renewable fuels. SAFCO Ventures will
oversee the project with the support of international and local contractors.
Financing Structure
The project’s financing includes:
·
Debt Financing:
A total of US$86.7 million in senior debt from the Asian Development Bank
(ADB), with syndicated B-loans provided by:
- The
Emerging Africa & Asia Infrastructure Fund (Private Infrastructure
Development Group)
- ILX,
an Amsterdam-based asset manager specializing in Sustainable Development
Goals and climate private debt strategies.
·
Equity Contribution:
Led by the International Finance Corporation (IFC), which contributed US$20
million from its own account, supplemented by up to US$10 million from a
climate-focused blended finance program launched in collaboration with the UK
Foreign, Commonwealth & Development Office.
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the future: Sustainable Aviation Fuel (SAF) and its impact on cleaner skies
Leadership Perspectives
Taimur Shaikh, Executive Chairman of SAFCO Ventures,
emphasized the significance of the project:
"The development of this SAF facility is a pivotal step in our
commitment to achieving net zero by 2050 while supporting Pakistan’s economic
development and environmental sustainability. This success is the result of
dedicated collaboration with our esteemed partners as we move toward a more
sustainable future."
Ali Shaikh, Chief Executive Officer of SAFCO Ventures,
extended gratitude to White & Case:
"We sincerely thank the White & Case team for their exceptional
advisory services on this transformative project. Their expertise and
dedication were key to securing the financing needed for Pakistan’s first SAF
facility."
The Advisory Team
The White & Case team was led by partners Kamran Ahmad, Mark Richardson
(both London), and Ibaad Hakim (Abu Dhabi), with support from associates Ryan
Gawrych, Asad Khan, Max Gueli, Neeraja Chemburkar, Miguel Bovill Rose (all
London), Elliott Hunt (Abu Dhabi), and Alvansa Vickya (Jakarta).
This financing marks a critical milestone in the journey towards sustainable
aviation and positions Pakistan as a key player in the global SAF industry.
Source: https://www.whitecase.com/