Major Saudi-Chinese credit deal signed as ACWA secures portfolio funding
New RCF agreement releases $100m for up-scaling power and water generation
Acwa Power, a Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, has signed a three-year revolving credit facility (RCF) agreement with China Construction Bank (DIFC Branch).
The company said the agreement provides it with access to a $100m credit facility that will support strategic plans to up-scale its core power and water generation portfolio in the Middle East, as well as the ‘Belt & Road’ countries engaged with China Construction Bank. It also aims to contribute to the social and economic development of the communities it invests in and serves.
Since 2009, Chinese financiers have contributed a total of $10bn across Acwa Power’s global project portfolio, while Chinese EPC contractors, suppliers, and financiers have taken part in 47 projects, covering landmark renewable and seawater desalination projects worldwide – including the 2,400MW Hassyan power plant in the UAE.
Chief Financial Officer Abdulhameed Al Muhaidib 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. The revolving facility further diversifies Acwa Power’s financing sources and enables it to continue to deliver low-carbon utility infrastructure for regions including the Middle East and Belt & Road Initiative countries such as Uzbekistan and Kazakhstan.”
Yuan Shengrui, Senior Executive Officer of China Construction Bank (DIFC Branch), said the credit facility was 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. He commented that: “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.”
