ACWA POWER Completes Conditions Precedent for Senior Loans Drawdown for 3 PV Solar Projects in Saudi Arabia

ACWA Power Co. declared on Thursday that Ar Raas 2, Saad 2, and Al Kahfah solar PV projects have met the conditions precedent for Senior Loans Drawdown. These projects, situated in the central and northern regions of Saudi Arabia, are anticipated to produce a combined 4.55GW of solar power upon completion.

According to disclosures on Tadawul, the total aggregate investment cost for these projects amounts to SAR 12.8 billion, with project debt financing of SAR 8.6 billion, which is non-recourse to ACWA Power. ACWA Power holds an effective 50.1% equity stake in each of the three projects.

The company specified that a consortium of local, regional, and international banks, including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, Saudi Awwal Bank, and HSBC, is involved. This financing is limited to ACWA Power’s pro-rata share of equity bridge loan, standby equity, and reserve account.

Furthermore, ACWA Power highlighted that the financing objective is to fund the development and construction of three large-scale PV Solar Plants. It confirmed the presence of related parties, represented by ‘Badeel,’ a wholly-owned company of the Public Investment Fund, which will be a partner in this project with a 49.9% equity stake in each of the three project companies. Both SNB and ‘Badeel’ are related parties.