ACWA Power secures financing for two power plants
The total financing amount for each project is SAR5.69 billion ($1.52 billion), with a term of approximately 28.1 years.
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Saudi Arabia, Riyadh: ACWA Power has signed senior debt financing documents for two combined cycle power plant (CCGT) projects in Saudi Arabia, Taiba 1 and Qassim 1. The agreements will support the development and construction of the two 1.8 GW power plants, each of which will be undertaken by separate project companies, Sidra One for Electricity Company for Taiba 1 and Qudra One for Electricity Company for Qassim 1. The projects were secured by an ACWA Power-Saudi Electricity Company (SEC) consortium in October 2023. They represent a combined investment of $3.89 billion and are integral to the country’s strategy to expand its power generation capacity and diversify its energy mix.
ACWA Power holds a 40% ownership stake in both project companies. The total financing amount for each project is SAR5.69 billion ($1.52 billion), with a term of approximately 28.1 years. The financing consortium comprises 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. ACWA Power’s guarantees on the financing are limited to its equity bridge loan, early generation revenue amount, standby equity contribution, and reserve account.
Source: Utilities Middle East