Acelen Renewables has signed a US$1.5 billion financing package for a sustainable aviation fuel ( SAF ) production plant in Bahia, northern Brazil. 

The debt transaction has been structured as a joint financing involving international commercial banks and development finance institutions ( DFIs ), combining multiple instruments within a blended finance framework.

The core financing totals US$830 million, including US$520 million from development lenders – IDB Invest, International Finance Corporation ( IFC ), FinDev Canada, Asian Infrastructure Investment Bank ( AIIB ), and the Brazilian Development Bank ( BNDES ) – and US$310 million from commercial banks, through Acelen Offshore.

The broader package also includes a local debenture issuance of up to 422.6 million reais ( US$84.30 million ), letters of credit of up to US$100 million, and a liquidity support line of up to US$150 million.

HSBC acted as the sole financial adviser and global lead coordinator. KfW IPEX-Bank is making a substantial contribution as coordinating lead arranger and underwriter; BBVA is acting as a coordinating lead arranger; and IDB Invest is taking a US$109 million position in the senior loan.

Acelen Renewables, headquartered in São Paulo, Brazil, is a renewable energy company owned by Mubadala Capital, the asset management arm of Abu Dhabi's sovereign wealth fund. Founded in 2023, the company seeks to drive the global energy transition by manufacturing next-generation, low-carbon biofuels.

The SAF is produced from used cooking oil and soyabean oil, both of which are certified in accordance with regulatory requirements. At a later stage, the feedstock will be gradually replaced by locally produced macaúba oil, using an established technology known as Hefa ( hydrotreated esters and fatty acids ).

Following its planned commissioning in 2029, the plant is expected to produce around 20,000 barrels per day of SAF and renewable diesel ( hydrotreated vegetable oil – HVO ). A significant portion of the output is already covered by supply contracts to Europe and North America.