ACWA Power Inks Financing and Security Agreements Worth USD 678 Million
ACWA Power said that has inked financing and security arrangements for Rawabi Water Desalination Co. for SR2.05 billion ($678 million) for Rawabi Water Desalination Co. in Saudi Arabia. The project, known as the Rabigh-4 Independent Water Plant, will be funded by long-term debt and equity, according to the firm, which is also known as the Rabigh-4 Independent Water Plant.
As per the announcement, the project would employ reverse osmosis technology and, when finished, will have a capacity of up to 600,000 cubic meters per day. ACWA Power owns 45 percent of the project's equity. Furthermore, the project will be situated in Rabigh and will include 1,200,000 m3 of drinkable water.
A consortium of local and foreign institutions, including Standard Chartered Bank, Saudi National Bank, Riyad Bank, the Saudi Investment Bank, and Bank of China, is financing the project. The whole funding package consists of SR2.04 billion in senior debt structured as a non-recourse project finance arrangement.
Based on a Tadawul statement, the finance will last up to 27 and a half years. ACWA Power completed the financing for Al-Shuaibah 1 and Al-Shuaibah 2 in July, with a total investment of SR8.3 billion ($2.2 billion) using a combination of long-term loan and equity.
ACWA Power confirmed this in a stock exchange statement, noting that the whole financing package included SR6.1 billion in senior debt. The National Development Fund provided an SR1.7 billion loan on behalf of the National Infrastructure Fund as part of this package.