ACWA Power Secures $100 Million Revolving Credit Facility from China Construction Bank
ACWA Power, a Saudi energy firm, has secured a $100 million revolving credit facility from China Construction Bank to boost its power generation and water desalination portfolio in the Middle East, Uzbekistan, and Kazakhstan. The three-year revolver agreement will provide the company with additional financing options to develop sustainable utility infrastructure in other regions. This move further strengthens ACWA Power’s commitment to delivering low-carbon solutions and supporting the transition to clean energy. The agreement also aims to boost the company’s social and economic development operations in the communities it serves.
Collaboration with Chinese Entities
ACWA Power has been collaborating with Chinese entities since 2016. The new revolving credit facility is an outcome of this ongoing collaboration. Abdulhameed Al-Muhaidib, the chief financial officer of ACWA Power, said that the facility boosts their near-term liquidity and funding flexibility as they pursue strategic growth opportunities. He also added that it goes to show the confidence that financiers have in their business performance and their ability to deliver large-scale projects of transformative social and economic value.
Supporting the Belt and Road Initiative
Yuan Shengrui, a senior executive of China Construction Bank at the Dubai International Financial Centre branch, said that the credit facility is reflective of the branch’s interest to strengthen its strategic partnership with ACWA Power and to promote the development of renewable energy projects in line with the directives of the Belt and Road Initiative. The Belt and Road Initiative is a global infrastructure development strategy adopted by the Chinese government involving infrastructure development and investments in countries in Asia, Europe, and Africa.
Collaboration in Previous Projects
ACWA Power and China Construction Bank have collaborated in several previous projects. These include the UAE’s 2,400 megawatts Hassyan power plant, the 485 MW Zarqa gas power plant in Jordan, and the 1,500 MW Sirdarya combined-cycle gas turbine power plant in Uzbekistan. Chinese financiers have also been instrumental in backing ACWA Power’s global project portfolio, with a total investment of $10 billion since 2009. Chinese engineering, procurement, and construction contractors, suppliers, and financiers have played a crucial role in 47 ACWA Power projects, including significant renewable energy and seawater desalination initiatives worldwide.
ACWA Power’s Portfolio
ACWA Power’s portfolio comprises 77 projects in operation, advanced development, or construction with an investment value of SR293 billion ($78.2 billion). The company has the capacity to generate 50.4 gigawatts of power and manage 6.8 million cubic meters per day of desalinated water. The company’s commitment to delivering low-carbon solutions and supporting the transition to clean energy is evident in its portfolio, which includes significant renewable energy and seawater desalination initiatives worldwide.
Conclusion
ACWA Power’s collaboration with China Construction Bank has resulted in a $100 million revolving credit facility that will boost its operations in the Middle East, Uzbekistan, and Kazakhstan. The facility provides the company with additional financing options to develop sustainable utility infrastructure in other regions. This move further strengthens ACWA Power’s commitment to delivering low-carbon solutions and supporting the transition to clean energy. The collaboration between ACWA Power and Chinese entities has resulted in several previous projects, including significant renewable energy and seawater desalination initiatives worldwide. ACWA Power’s portfolio comprises 77 projects in operation, advanced development, or construction with an investment value of SR293 billion ($78.2 billion), demonstrating its commitment to delivering sustainable utility infrastructure.