Saudi Arabian water and energy company ACWA Power has signed a $125 million facility with financial institution APICORP to support its future growth pipeline.
The five-year facility will support funding of ACWA Power’s renewable projects in key markets.
The agreement is aligned with APICORP and ACWA Power’s shared mission of accelerating the energy transition in the MENA region and globally through green technologies.
APICORP forecasts that renewables will comprise just under one-third (32%) of the total value of planned and committed power projects in the MENA region for the period 2020-2024.
ACWA Power will use the funding to expand its portfolio of green technologies from the current 15% of the company’s financing portfolio.
Moreover, the APICORP facility can also be utilized as a revolver loan during the initial 3-year period, whereby it could be settled and redrawn as per ACWA Power’s liquidity needs, enabling the company to recycle capital and increase financial capacity for further portfolio development and growth.
In October, APICORP provided a $70.5 million commitment to support ACWA Power and other co-sponsors to develop Phase V of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the world’s largest single-site solar park.
Rajit Nanda, Chief Portfolio Management Officer and Acting Chief Investment Officer of ACWA Power, said: “Pursuing renewable energy development is the cornerstone of ACWA Power’s growth strategy, and we are focused on enabling transformative solutions to help reduce carbon footprint and increase the share of renewable energy in the Kingdom of Saudi Arabia, and globally. The timely closing of this facility has also further strengthened ACWA Power’s relationship with APICORP, a long-term financial partner.”
Nicolas Thévenot, Managing Director of Corporate Banking at APICORP, adds: “Backing the sustainable development of the Arab energy sector through innovative financing solutions continues to be a strategic priority for APICORP. Worldwide and across the MENA region, we are witnessing a concerted drive to accelerate the share of renewables in the energy mix through the adoption of innovative, low-carbon technologies and solutions. This agreement further cements our longstanding and fruitful partnership with ACWA Power to build a renewable, more sustainable energy future.”