Entire facility amount to be funded by Saudi Hollandi Bank (SHB)
Riyadh, Saudi Arabia - ACWA Power has announced the increase of its revolver facility by SAR 600 million. The amount increases the 2015 revolver facility - which will continue to stand and now totals SAR 1,309 million (USD 349 million). Moreover this enhances the total Revolving facilities at ACWA Power's disposal to SAR 3,484 million (USD 929 million)
The facility's enhancement will be solely funded by Saudi Hollandi Bank (SHB). The facility's availability period is until the third quarter of 2020 and is structured on a shariah compliant commodity murabaha structure.
Thamer Al Sharhan, Managing Director of ACWA Power, said: "With our rapid growth has come increased business requirements and this facility will help expand our war chest to offer incremental liquidity in anticipation of further projects. The availability of close to a billion dollars (in SAR equivalent) of revolving facilities stands to substantially enhance our liquidity base. This is testament to the confidence that banks have in ACWA Power. We are grateful to SHB for extending the most recent facility."
The 2015 revolver facility enhanced the existing revolving facilities base by SAR 709 million. The commitments for that facility were split between three relationship banks: Arab National Bank, Bank Al Bilad, and Saudi Hollandi Bank, which is also acting as the Investment Agent. The new facility strengthens the precedent that the revolver facilities set in terms of pricing, structure and documentation, with the new facility comparing favourably with both local and regional peers.
Commenting on the announcement, Kashif Rana, Chief Financial Officer at ACWA Power said: "We're delighted with the response we've received from the house banks in the Kingdom, which reinforces the positive relationship we have historically enjoyed with them. A war chest of 929 MUSD (in SAR equivalent) will help strengthen the balance sheet and creates substantial incremental liquidity to our capital structure as well as optimizes our cash flow utilization as we continue to grow at a rapid pace with committed capital spend in the coming years. We would like to extend our deepest thanks to Saudi Hollandi Bank for enhancing our ability and flexibility to do so."
-Ends-
About ACWA Power:
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with presence in 11 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power's portfolio, with an investment value in excess of USD 32 billion, can generate 22.8 GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.
ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group).
ACWA Power pursues a mission to reliably deliver electricity and desalinated water at the lowest possible cost while seeking to maximize local content and local employment creation, thereby contributing to the social and economic development of the communities and countries it invests in and serves.
ACWA Power strives to achieve success by adhering to the values of Safety, People and Performance in operating its business.
For more information, visit www.acwapower.com, or contact:
Jon Barber
Director - Communications & External Affairs
T + 971 (0)4 509 1052
M + 971 56 507 5710
F + 971 (0)4 385 9625
acwapower.com
22nd Floor, Nassima Tower
Sheikh Zayed Road
P.O. Box 30582, Dubai
United Arab Emirates
© Press Release 2016
