Saudi ACWA Power announces financial close on $2.4bln Al-Shuaibah solar projects

Saudi ACWA Power announces financial close on $2.4bln Al-Shuaibah solar projects

A consortium, comprising Saudi Arabian utility developer ACWA Power and subsidiaries of Public Investment Fund (PIF) and Saudi Aramco, has reached a financial close of the $2.37 billion Al Shuaibah 1 and Al Shuaibah 2 solar PV projects in the Makkah province.

The $1.63 billion senior debt financing includes a Saudi Riyal-denominated loan worth $450 million from the National Development Fund through the Kingdom's National Infrastructure Fund and a US-dollar-denominated commercial bank facility of $1.18 billion.

The facility was provided by First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Banque Saudi Fransi, Saudi National Bank, Standard Chartered Bank and Saudi Investment Bank.

Saudi Power Procurement Company is the procurer and the off-taker for the projects, said ACWA Power, itself partly owned by PIF.

The solar PV projects are jointly owned by PIF subsidiary Badeel (34.99%), ACWA Power (35.01%), and Aramco subsidiary SAPCO (30%).

Situated in Al Shuaibah in the Makkah Province, Al Shuaibah PV 1 and Al Shuaibah PV 2 will have a capacity of 600 MW and 2,031 MW respectively. The projects are capable of powering nearly 450,000 households.

The projects will generate an aggregate capacity of over 2.6 GW of clean electricity for the Kingdom, with commercial operations starting in 2025.

ACWA Power's solar portfolio