Saudi ACWA Power secures SR5.69 billion debt financing for power plants
In a major development, Saudi utility firm ACWA Power has sealed a senior debt financing agreement worth SR5.69 billion ($1.51 billion) for the Qassim 1 Combined Cycle Power Plant. The deal, facilitated through Qudra One for Electricity Co., spans 28 years, as revealed in ACWA Power’s statement to Tadawul.
Financing details and lenders
The senior debt for the power plant was sourced from a mix of international and local commercial lenders, including Standard Chartered Bank, Bank of China, Riyad Bank, Saudi National Bank, Alinma Bank, Saudi Investment Bank, and Saudi Awwal Bank. The plant boasts a robust capacity of 1,800 megawatts in Qassim.
Additional funding for Taiba 1 Combined Cycle Gas Turbine
ACWA Power also announced a separate senior debt financing deal for the Taiba 1 Combined Cycle Gas Turbine with a capacity of 1,800 MW in Madinah. The deal, facilitated through Taiba 1 CCGT Project Co. and Sidra One for Electricity Co., mirrors the Qassim 1 agreement in terms of value (SR5.69 billion) and duration (28 years), involving similar lenders.
Strategic partnerships for renewable energy projects
Looking beyond the domestic landscape, ACWA Power expressed interest in investing $10 billion in Malaysia over the next decade for renewable energy projects. The company aims to collaborate with Cypark Resources Bhd on these ventures, as confirmed by Malaysian Prime Minister Anwar Ibrahim following a meeting with ACWA Power Chairman Mohammad Abunayyan.
Global initiatives and collaborations
In addition to the Malaysia investment plans, ACWA Power has been actively engaging in global partnerships to accelerate the development of renewable projects. This includes agreements with SOCAR in Azerbaijan to enhance low-carbon products and with the International Renewable Energy Agency to promote clean energy adoption worldwide.
ACWA Power’s collaboration with IRENA will focus on infrastructure investment in renewable energy, green hydrogen advancement, solar energy, and the nexus between energy and water. The parties will also explore avenues for mobilizing finance and investment for renewable projects and supporting clean energy infrastructure development.