ACWA Power completes financial close for Shuaibah 3 IWP at $821 mln

Logo of ACWA Power

ACWA Power announced financial close for the Shuaibah 3 independent water project (IWP) project at a total investment cost of $821 million, the company said in a statement to Tadawul.

Shuaibah 3 is a joint venture (JV) between ACWA Power and Water and Electricity Holding Co. (Badeel), with ACWA Power holding a 68% stake.

The project involves the development, financing, design, engineering, procurement, manufacture, factory testing, transportation, construction, erection, installation, completion, testing, commissioning, insurance, ownership, operation and maintenance of desalination for the Shuaibah 3 IWP under a 25-year offtake contract with Saudi Water Partnership Co. (SWPC).

The financial close for the $632 million senior debt facilities was arranged on a non-recourse project finance basis from a consortium of financiers comprising Standard Chartered Bank, MUFG, ADIB, SNB, BOC, SAIB, ICBC, KDB and Warba Bank.

In addition, the joint venture secured equity bridge loan facilities of $189 million from SABB and Riyad Bank.

The financial close was completed for the refinancing of the utility’s existing senior facility denominated in US dollar and Saudi riyals, the proceeds of which would be utilized by Shuaibah Water and Electricity Co. (SWEC) for varied financial commitments, including the prepayment of its existing senior debt facility, financing expenses and for tax purposes. ACWA Power’s holds 30% effective equity stake in SWEC.

SWEC successfully replaced US dollar and Saudi riyals tranches of existing outstanding senior debt of $415 million and SAR 285 million with $420 million and SAR 285 million facilities, respectively, repayable semi-annually with final installment to be paid in January 2026.

Financial close for the $497 million senior debt facility arranged on a non-recourse project finance basis was from a consortium of financiers comprising Societe Generale, Al Rajhi Bank, Riyad Bank, Saudi Fransi Bank and ADCB.

SWEC is also in process of replacing existing subordinated debt facility ($112 million) with a $230 million subordinated debt facility at a favorable interest rate, repayable semi annually with final installment to be paid in January 2026.