Saudi utility company ACWA Power recently completed a senior debt financing arrangement worth SR5.69 billion ($1.51 billion) for the Qassim 1 Combined Cycle Power Plant.
This financial deal, facilitated through Qudra One for Electricity Co., spans 28 years and was disclosed in an ACWA Power announcement to Tadawul.
A combination of both local and international banks, including Standard Chartered Bank, Bank of China, Riyad Bank, Saudi National Bank, Alinma Bank, Saudi Investment Bank, and Saudi Awwal Bank, provided the financing. The power plant, located in Qassim, will have a capacity of 1,800 megawatts.
Additionally, ACWA Power disclosed a similar financing arrangement for the Taiba 1 Combined Cycle Gas Turbine in Madinah, also with a capacity of 1,800 MW and a term of 28 years, amounting to the same SR5.69 billion. This agreement involved the same consortium of banks.
ACWA Power owns a 40% share in both Qudra Co. and Sidra One, with SNB and Saudi Electricity Co. acting as related parties in the agreements. The financing is supported by equity bridge loans, early-generation revenue, reserve liquidity, and other guarantees.
On a related note, on April 30, ACWA Power announced plans to invest $10 billion in Malaysia over the next decade to develop renewable energy projects, in collaboration with Cypark Resources Bhd.
This initiative was confirmed by Malaysian Prime Minister Anwar Ibrahim on his Facebook page after his meeting with ACWA Power Chairman Mohammad Abunayyan at the World Economic Forum in Riyadh.
The partnership aims to develop renewable energy projects across various Malaysian states.
In April, ACWA Power also entered into a new agreement with SOCAR, Azerbaijan‘s state oil company, to fast-track renewable energy projects.
This initiative primarily aims to enhance SOCAR’s carbamide fertilizer facility for the production of value-added low-carbon products.
In the same month, ACWA Power signed another agreement with the International Renewable Energy Agency (IRENA) to boost global clean energy adoption.
This deal focuses on sharing insights on renewable energy infrastructure investment, advancing green hydrogen, solar energy, and the integration of energy and water systems.
ACWA Power and IRENA will also explore ways to mobilize finance and investment for renewable energy projects and supporting infrastructure.
