ACWA Power Announces Financial Close of $1.33 bln Debt Facility for Red Sea Project

International Company for Power and Water Projects (“ACWA Power”) announced the dry financial close for US$1.33 billion senior debt facilities for the Red Sea Multi-Utilities Project.

The company indicated on Tadawul that the project is a joint venture (JV) between ACWA Power, SPIC Huanghe Hydropower Development Company (SPIC) and Saudi Tabreed District Cooling Company (Saudi Tabreed), with ACWA Power holding a 50% equity stake.

The project involves the construction, management and operations of power, desalination, waste-water treatment, solid waste processing, district cooling plants and communication infrastructure for the Red Sea Project (the “Project Systems”) and the JV will complete the development, financing, design, engineering, construction, procurement, manufacturing, testing and commissioning, operation and maintenance and eventual transfer of the Project Systems and associated facilities, under a 25-year multi-utilities off take contract with The Red Sea Utilities Company (“TRSUC”) .

The company added that this project serves the world’s most ambitious regenerative tourism project and has been designed to offer access to some of Saudi Arabia’s most important cultural treasures while protecting, preserving and enhancing the local environment.

Dry financial close for the $1.33 billion senior debt facilities arranged on a non-recourse project finance basis from a consortium of financiers comprising Al Rajhi Banking and Investment Corporation, Banque Saudi Fransi, The Saudi British Bank, Arab Petroleum Investment Corporation (APICORP), Standard Chartered Bank, and Riyad Bank. In addition, the JV has secured Equity Bridge Loan facilities from Bank AlBilad, Bank Al-Jazira and Arab National Bank and a Working Capital and VAT Facility for $93.4 million from Al Rajhi Banking and Investment Corporation, the company concluded.