ACWA Power announces dry financial closure for $1.33 bln senior debt facilities for Red Sea JV

Logo of ACWA Power

International Company for Power and Water Projects (ACWA Power) announced the dry financial closure for $1.33 billion (nearly SAR 5 billion) senior debt facilities for the Red Sea Multi-Utilities Project, the company said in a statement to Tadawul.

The dry financial closure was arranged on a non-recourse project finance basis from a consortium of financiers comprising Al Rajhi Bank, Banque Saudi Fransi (BSF), The Saudi British Bank (SABB), Arab Petroleum Investment Corporation (APICORP), Standard Chartered Bank, and Riyad Bank. Moreover, the JV also secured equity bridge loan facilities from Bank Albilad, Bank AlJazira and Arab National Bank (ANB), in addition to working capital and VAT facilities worth $93.4 million from Al Rajhi Bank.

The project is a joint venture (JV) between ACWA Power, SPIC Huanghe Hydropower Development Co. (SPIC) and Saudi Tabreed District Cooling Co. (Saudi Tabreed), with ACWA Power holding a 50% equity stake.

The project involves the construction, management and operations of power, desalination, waste-water treatment, solid waste processing, district cooling plants and communication infrastructure for the Red Sea Project.

The JV will complete the development, financing, design, engineering, construction, procurement, manufacturing, testing and commissioning, operation and maintenance and eventual transfer of the project systems and associated facilities, under a 25-year multi-utilities offtake contract with The Red Sea Utilities Co. (TRSUC).