China Construction Bank and Acwa Power, a prominent Saudi developer, investor, and operator of power generating, water desalination, and green hydrogen facilities globally, have agreed to a three-year revolving credit facility.
In making this announcement, Acwa Power stated that the agreement gives it access to a $100 million credit facility that will support the company's strategic plans to expand its power and water generation portfolio in the Middle East and the countries along the Belt and Road and help the communities it invests in and serves achieve social and economic development.
Chinese EPC contractors, suppliers, and financiers have participated in 47 projects since 2009, including the 2,400 MW Hassyan power plant in the United Arab Emirates, to which Chinese financiers have contributed a total of $10 billion. These projects span Acwa Power's global project portfolio.
Chief Financial Officer Abdulhameed Al Muhaidib said: "The revolving credit facility by China Construction Bank (DIFC Branch) is an outcome of the ongoing collaboration between Acwa Power and Chinese entities, boosting our near-term liquidity and funding flexibility as we pursue strategic growth opportunities."
"Most importantly, it goes to show the confidence that financiers have in our business performance and in our ability to deliver large-scale projects of transformative social and economic value," he stated.
"The revolving facility further diversifies Acwa Power’s financing sources and enables it to continue to deliver low-carbon utility infrastructure for regions including the Middle East and Belt & Road Initiative countries such as Uzbekistan and Kazakhstan," he added.
The credit facility, according to Yuan Shengrui, Senior Executive Officer of China Construction Bank (DIFC Branch), reflects the branch's desire to strengthen its strategic partnership with Acwa Power and to encourage the development of renewable energy projects in accordance with the guidelines of the Belt and Road initiative.