ACWA Power Co. headquarters
ACWA Power Co. announced the fulfillment of the conditions precedent to the drawdown of the credit facilities to fund Ar Raas 2, Saad 2 and Al Kahfah solar PV projects in central and north Saudi Arabia.
The three large-scale projects have a production capacity of 4.55 gigawatt (GW) of solar PV energy, with a total investment cost of $3.4 billion (SAR 12.8 billion), including $2.3 billion (SAR 8.6 billion) to finance projects at a non-recourse basis.
ACWA Power owns a 50.1% stake in each of the three projects.
ACWA Power secured the financing facility on Feb. 14, 2024, from a consortium of local, regional and international banks, including Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), Mizuho Bank, Riyad Bank, Saudi National Bank (SNB), Standard Chartered Bank and HSBC, at a total value of $2.3 billion (SAR 8.6 billion).
The credit facility tenor will extend for 27.75 years, guaranteed by ACWA Power pro-rata share of an equity bridge loan, standby equity and reserve account.
Water and Electricity Holding Company (Badeel), a 100% subsidiary of the Public Investment Fund (PIF), has a stake of 49.9% in each of the three project companies. SNB is one of the financing entities. Both are related parties, the statement added.
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