ACWA Power Secures Landmark $2.3 Billion Funding For Saudi Solar Trio

ACWA Power Company successfully secured a loan valued at $2.30 billion (SAR 8.60 billion) on February 14th for three solar power projects.

A consortium of local, regional, and international banks, including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank (SIB), Standard Chartered Bank, Saudi Awwal Bank, and HSBC, will provide the funding over a period of 27.75 years, as outlined in a bourse filing.

The financing will support the Ar Raas 2, Saad 2, and Al Kahfah solar power projects situated in central and northern Saudi Arabia. ACWA Power holds a 50.1% equity stake in each project, with the Water and Electricity Holding Company (Badeel), a wholly-owned entity of the Public Investment Fund (PIF), holding the remaining 49.9%.

The non-recourse debt financing, totalling $3.40 billion (SAR 12.80 billion), signifies that the lender cannot pursue any rights beyond the financed assets.

Once completed, the projects are anticipated to generate 4.55 gigawatts of energy. In December, ACWA Power entered into a framework agreement for a green hydrogen initiative in Egypt, involving an investment exceeding $4 billion.