Saudi-based Acwa Power, a leader in power generation and water desalination plants, has announced the dry financial close of a $125 million senior refinancing facility for its subsidiary Rabigh Arabian Water & Electricity Company (Rawec).
The proceeds of the facility will be utilized by Rawec for various financial commitments including financing expenses and for general corporate purposes including distribution of dividends, said Acwa in its filing to the Saudi bourse Tadawul.
The facility, denominated in US dollars, will also help in the optimization of the capital structure of Rawec and the monetization of the future cashflows of the company, it stated.
The new refinancing facility will increase the financing costs for Rawec. The $125 million senior financing facility is being raised from the local bank market and has a tenor of 12.5 years maturing in 2034.
This facility further supplements and is at the same rate to the previously announced $800 million equivalent senior debt facility that was drawn down on December 30, 2021, it stated.
The new facility targets the optimization of the capital structure of Rawec and monetization of the future cashflows of the company, it added.
