ACWA Power signs financing and security agreements worth $678m for Rabigh-4 IWP

RIYADH: Saudi Arabia will soon have a better grip over water scarcity challenges, with ACWA Power on Sunday announcing that it signed financing and security agreements for Rawabi Water Desalination Co. valued at SR2.05 billion ($678 million).   

The company, also known as the Rabigh-4 Independent Water Plant, told the Saudi Stock Exchange that the project will be financed through long-term debt and equity.   

The statement added that the project will use reverse osmosis technology and, once completed, will have a capacity of up to 600,000 cubic meters per day.  

ACWA Power holds a 45 percent equity stake in the project. 

Additionally, the project will be based in Rabigh and hold 1,200,000 m3 of potable water.   

The project financiers include a consortium of domestic and international banks, including Standard Chartered Bank, Saudi National Bank, Riyad Bank, the Saudi Investment Bank and Bank of China. 

The complete funding comprises SR2.04 billion in senior debt structured under a non-recourse project finance arrangement. 

According to a statement to Tadawul, the financing duration will be up to 27 and a half years. 

In a bid to build the world’s largest solar project, ACWA Power finalized the financing for Al-Shuaibah 1 and Al-Shuaibah 2 in July, at a total investment of SR8.3 billion ($2.2 billion) through a mix of long-term debt and equity.  

ACWA Power announced this in a stock exchange filing on Sunday, revealing that the overall financing package includes SR6.1 billion in senior debt.  

This package includes a SR1.7 billion loan extended by the National Development Fund on behalf of the National Infrastructure Fund.   

Furthermore, there is an additional SR4.4 billion US-dollar commercial facility provided by a consortium of local, regional, and international banks, which includes Bank Saudi Fransi, First Abu Dhabi Bank and Mizuho Bank. 

In November, ACWA Power entered into power purchase agreements with the Water and Electricity Holding Co., also known as Badeel. These agreements were made to advance the solar plant project, which has the capacity to generate electricity for approximately 350,000 households.