Saudi Arabian utility developer ACWA Power has signed a $125 million Shariah-compliant finance deal with APICORP, to accelerate its energy transition, both in the Middle East and North Africa and around the world.

The five-year corporate facility with the Saudi-based financial institution will support ACWA Power’s future growth pipeline and has been earmarked for funding the company’s investments in renewable projects, in countries in which it already operates, as well as future high-growth markets.

“The five-year tenor is well suited for financing a typical renewable project’s initial life cycle, enabling greater financial strength during the early development phase.

“Moreover, the APICORP facility can also be utilised as a revolver loan during the initial three-year period, whereby it could be settled and redrawn as per ACWA Power’s liquidity needs, enabling the company to recycle capital and increase financial capacity for further portfolio development and growth,” the companies said in a joint statement.

Nicolas Thévenot, managing director of corporate banking at APICORP, said: “Worldwide and across the MENA region, we are witnessing a concerted drive to accelerate the share of renewables in the energy mix through the adoption of innovative, low-carbon technologies and solutions.”

In October, APICORP announced a $70.5 million agreement to finance the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.

Rajit Nanda, chief portfolio management officer and acting chief investment officer of ACWA Power, said: “Pursuing renewable energy development is the cornerstone of ACWA Power’s growth strategy, and we are focused on enabling transformative solutions to help reduce carbon footprint and increase the share of renewable energy in the Kingdom of Saudi Arabia, and globally.”

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

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