White & Case advises SAFCO Ventures on first sustainable aviation fuel facility project financing in Pakistan and broader Asia-Pacific region

Global law firm White & Case LLP has advised SAFCO Ventures on a landmark US$141.9 million combined debt and equity raise for the design, construction and operation of a sustainable aviation fuel (SAF) facility in Sheikhupura, Pakistan.

"This groundbreaking venture marks the first SAF project financing anywhere in the Middle East, Central Asia and Asia-Pacific regions," said White & Case partner Kamran Ahmad, who co-led the Firm's deal team. "Our work on this project underscores White & Case's commitment to be at the heart of cutting-edge net-zero projects. We once again demonstrated our ability to successfully support our clients to raise finance for truly innovative and first-of-a-kind energy transition and circular economy projects and technologies."

Earlier this year, SAFCO Ventures secured a long-term offtake agreement with Shell Eastern Trading (Pte) Ltd, committing to supply up to 145,000 tons of SAF annually once the facility is operational. This accounts for approximately 10 percent of anticipated global SAF production in 2024. SAFCO Ventures will, with the support of international and local contractors, build and operate the SAF facility. The project will use technology from French Group Axens, incorporating its innovative patented technology to convert waste vegetable oil feedstock into renewable fuels.

The debt financing includes a total of US$86.7 million senior debt from the Asian Development Bank, including syndicated B-loans provided by The Emerging Africa & Asia Infrastructure Fund, owned by the Private Infrastructure Development Group and managed by NinetyOne, and ILX, an Amsterdam-based emerging market asset manager focused on the United Nations' Sustainable Development Goals and climate private debt strategies.

The equity contribution was provided by the International Finance Corporation. Of the total equity contribution, US$20 million comes from IFC's own account, with an additional investment of up to US$10 million from a climate-related blended finance program recently launched in partnership with the UK Foreign, Commonwealth & Development Office.

Taimur Shaikh, Executive Chairman of SAFCO Ventures, said: "Successfully securing the development of the SAF project marks a significant milestone for SAFCO Venture's commitment to achieving net zero by 2050, Pakistan's economic development and environmental stewardship. This remarkable achievement was made possible through dedicated collaboration with our esteemed partners. Together, we look forward to continuing our journey towards a sustainable future."

Ali Shaikh, Chief Executive Officer of SAFCO Ventures, said: "A huge thank you to the White & Case team for its advisory on the project financing of SAFCO Ventures' SAF plant in Pakistan. The team's expertise and dedication were instrumental to our project's success."

The White & Case team which advised on the transaction was led by partners Kamran Ahmad, Mark Richardson (both London) and Ibaad Hakim (Abu Dhabi) and included associates Ryan Gawrych, Asad Khan, Max Gueli, Neeraja Chemburkar, Miguel Bovill Rose (all London), Elliott Hunt (Abu Dhabi) and Alvansa Vickya (Jakarta).

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