ACCIONA raises $480mln in green finance for three sewage treatement plants in Saudi Arabia

ACCIONA raises $480mln in green finance for three sewage treatement plants in Saudi Arabia

RIYADH:. ACCIONA, a leading company in the development of water and other sustainable infrastructure, together with its local partners Tawzea and Tamasuk, has closed green loans totaling $480 million for three independent sewage treatment plants (ISTPs) in Saudi Arabia.

These new water treatment contracts have been awarded by the state-owned Saudi Water Partnership Company (SWPC).

With the financial close of these projects, ACCIONA takes a further step in its commitment to sustainability and innovation. For the first time in its water projects, the company is structuring not only a green loan but also an Islamic financing.

The financial close of these three ISTPs at the same time, in only six months, is a major milestone in the water sector, as a result of the joint work between SWPC and the Project Companies.

The financing syndicate for Madinah-3, Buraydah-2 and Tabuk-2 includes local, regional, and international lenders. The financing structure incorporates an Islamic tranche for 60% of the value of the loans structured as an “Ijara Facility”, or Islamic leasing. Investors and financial institutions are increasingly allocating capital to green infrastructure projects such as water treatment plants.

The Project Companies developed a Green Loan Framework in accordance with Green Loan Principles 2021 of the Loan Market