KSA’s ACWA Power inks $125mn deal to fund growth – MEP MiddleEast

KSA’s ACWA Power inks $125mn deal to fund growth – MEP MiddleEast

Saudi Arabia-based developer, investor, and operator of power generation and desalinated water plants, ACWA Power, has inked a $125mn 5-year Shariah-compliant corporate facility with multilateral development financial institution, APICORP, to support ACWA Power's future growth pipeline.

The facility has been earmarked for funding ACWA Power's investments in renewable projects in the countries it operates in, as well as future high-growth markets.

The agreement is aligned with APICORP and ACWA Power's shared mission to accelerate the energy transition in the MENA region and globally through green technologies, which currently comprise more than 15% of APICORP's financing portfolio.

The five-year tenor is well-suited for financing a typical renewable project's initial life cycle, enabling greater financial strength during the early development phase.

Moreover, the APICORP facility can also be utilised as a revolver loan during the initial 3-year period, whereby it could be settled and redrawn as per ACWA Power's liquidity needs, enabling the company to recycle capital and increase financial capacity for further portfolio development and growth.

Commenting on the deal, the managing director of Corporate Banking at APICORP, Nicolas Thévenot, said: “Backing the sustainable development of the Arab energy sector through innovative financing solutions continues to be a strategic priority for APICORP. Worldwide and