Bid & Tender


Acwa Power Achieves Financial Close for Red Sea Multi-Utilities Project

Saudi-based Acwa Power, a leader in power generation and water desalination plants, has announced the financial close of senior debt facilities worth $1.3 billion for the Red Sea Multi-Utilities Project in partnership with a consortium of financiers.


The financial close is for the development, construction and operations and maintenance of the Red Sea Multi-Utilities Project, said Acwa Power in its filing to the Saudi bourse Tadawul.


This comes following the finalization of the deal worth $1.302 billion on the conditions under the financing documents (Wet Financial Close) instead of $1.33 billion that was highlighted in the previous announcement (dry financial close) on December 21, 2021, it stated.


In the December notification, Acwa had announced that it had completed the dry financial close for $1.33 billion senior debt facilities for the Red Sea Multi-Utilities Project.


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.


It is a joint venture between Acwa Power, Spic Huanghe Hydropower Development Company and Saudi Tabreed District Cooling Company (Saudi Tabreed), with Acwa Power holding a 50% equity stake.


In December, Acwa had announced that the JV would be responsible for 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 offtake contract with The Red Sea Utilities Company.


But in yesterday's bourse filing, Acwa revealed the JV will only look into 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 financiers' consortium includes Saudi National Bank in addition to lenders mentioned earlier - Al Rajhi Banking and Investment Corp, Banque Saudi Fransi, The Saudi British Bank, Arab Petroleum Investment Corporation (Apicorp), Standard Chartered 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 $93.4million from Al Rajhi Banking and Investment Corporation.



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