ACWA Power announces dry financial close of $470 mln facility for RAWEC

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ACWA Power announced today, Feb. 13, the dry financial close of a $470 million dollar-denominated senior loan facility for its subsidiary Rabigh Arabian Water & Electricity Co. (RAWEC), according to a bourse filing.

The facility was raised from local banks with a tenor of 12.5 years maturing in 2034. It is expected to be drawn down before month-end.

The proceeds will be utilized for RAWEC’s various financial commitments, including financing expenses, general corporate purposes and dividend distribution.

The facility supplements and is pari passu to the previously announced $800 million senior debt facility drawn in December 2021, as well as the $125 million senior debt facility drawn in January 2022.

The new financing facility targets the optimization of RAWEC's capital structure, monetization of its future cashflows and is expected to result in an increase in the subsidiary’s financing costs, the statement noted.

On Dec. 21, 2021, ACWA Power announced the financial close for an $800 million refinancing facility, denominated in USD and SAR, according to Argaam's data.

Last month, the company announced the dry financial closure for a $125 million senior refinancing facility, which will be utilized by RAWEC for various financial commitments. This facility supplements the previously announced $800 million equivalent senior debt facility.

ACWA Power holds an indirect 99% equity stake in RAWEC through its wholly-owned subsidiaries. RAWEC developed its integrated facility in two phases - Phase I was commissioned in June 2008 and Phase II in June 2016. The integrated facility has an installed capacity of 840 megawatts (MW) power, 6,110 tons per hour (t/h) steam and 12,000 t/h water.

RAWEC is independent water, steam and power producer that supplies essential utilities on a captive basis to an integrated refinery and petrochemical complex owned by Rabigh Refining and Petrochemical Co. (Petro Rabigh).