ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants globally, entered into a three-year revolving credit facility (RCF) agreement with China Construction Bank (DIFC Branch), a renowned Chinese state-owned lender. As per the terms of the agreement, ACWA Power will receive USD$100 million credit facility, which will play a crucial role in supporting the company’s strategic plans to expand its power and water generation portfolio in the Middle East, Belt & Road countries, and contribute to the social and economic development of the communities it serves.
The revolving facility enhances ACWA Power’s financing sources and enables it to continue its mission of delivering low-carbon utility infrastructure in regions such as the Middle East and Belt & Road Initiative countries, including Uzbekistan and Kazakhstan.
ACWA Power and China Construction Bank have been collaborating since 2016. The bank has been involved in financing significant projects such as the 2,400MW Hassyan power plant in the UAE, developed jointly by a consortium of China’s Harbin Electric International and ACWA Power, along with Dubai Electricity and Water Authority (DEWA). They have also collaborated on projects like the 485MW Zarqa gas power plant in Jordan and the 1500MW Sirdarya CCGT power plant in Uzbekistan. ACWA Power has also strengthened its partnership with Chinese investors in renewable energy projects under the Belt and Road Initiative, utilizing the RMB-related services and products provided by China Construction Bank.
Chinese financiers have contributed a total of US$10 billion across ACWA Power’s global project portfolio since 2009. Chinese EPC contractors, suppliers, and financiers have also actively participated in 47 projects involving renewable energy and seawater desalination projects across the globe.
Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, said “The revolving credit facility by China Construction Bank (DIFC Branch) is an outcome of the ongoing collaboration between ACWA Power and Chinese entities, boosting our near-term liquidity and funding flexibility as we pursue strategic growth opportunities. Most importantly, it goes to show the confidence that financiers have in our business performance and in our ability to deliver large-scale projects of transformative social and economic value”
Yuan Shengrui, Senior Executive Officer of China Construction Bank (DIFC Branch), said, “The credit facility is reflective of the branch’s interest to strengthen its strategic partnership with ACWA Power and to promote the development of renewable energy projects, in line with the directives of the Belt and Road initiative. By supporting entities such as ACWA Power, we are able to make meaningful impact in the renewable energy sector, and jointly drive positive change for a greener tomorrow.”
