The Asian Development Bank (ADB) agreed to finance a waste-based aviation fuel production facility in Sheikhupura with $86.2 million.
“A historic $86.2 million financial package that will support the building and running of a sustainable aviation fuel (SAF) facility in Sheikhupura — the very first private sector-led SAF initiative in Asia and the Pacific,” the ADB said in a statement after signing with SAFCO Venture Holding Ltd.
In addition to $45 million in syndicated loans, which include B-loans from The Emerging Africa & Asia Infrastructure Fund, a newly formed infrastructure debt fund operated by PIDG and managed by NinetyOne, and ILX, an Amsterdam-based emerging market asset manager specializing in SDG and climate private debt strategies, the financing comprises $41.2 million from ADB’s ordinary capital resources (OCR).
A syndicated parallel loan is being offered by the International Finance Corporation. In addition to being the required lead arranger and book-runner to the financing package, ADB is the lender of record for the B-loans.
Axens, Rothschild & Co. and SAFCO are collaborating on the project for the first time in the nation’s history.
The ADB’s funding, according to SAFCO’s CEO Ali Shaikh, is a major step toward a sustainable future for the world’s aviation industry by encouraging the development of innovative technologies, the creation of jobs, and a considerable decrease in greenhouse gas emissions.
Used cooking oil is one among the waste-based feedstocks that the SAF plant in Sheikhupura will employ.
Shell Eastern Trading (Pte) Ltd and SAFCO have inked a long-term offtake deal for up to 145,000 tonnes of SAF annually from the SAF facility in Pakistan when the projected plant is finished.
