ACWA Power Company secured a loan worth $2.30 billion (SAR 8.60 billion) for three of its solar power projects on 14 February.

The funding will be provided over 27.75 years by a consortium of local, regional, and international banks, including Banque Saudi Fransi, Japan-based Mizuho Bank, Riyad Bank, Saudi National Bank (SIB), Standard Chartered Bank, Saudi Awwal Bank, and HSBC, according to a bourse filing.

The loan will finance Ar Raas 2, Saad 2, and Al Kahfah solar power projects, which are located in the central and northern regions of Saudi Arabia.

ACWA Power holds an effective 50.1% equity stake in each of the three projects, while the Water and Electricity Holding Company (Badeel), a wholly-owned entity by the Public Investment Fund (PIF), holds 49.9% in each of them.

The amount of debt financing for the projects is non-recourse to ACWA Power, meaning that it does not allow the lender to pursue any rights other than the financed assets.

With a total aggregate investment cost of $3.40 billion (SAR 12.80 billion), the projects are expected to generate 4.55 gigawatts of energy once completed.

In December, ACWA Power signed a framework agreement for a green hydrogen initiative in Egypt, entailing an investment surpassing $4 billion.

ACWA Power recorded a net profit after Zakat and tax of SAR 1.08 billion during the first nine months of 2023, marking a 22.49% year-on-year (YoY) increase from SAR 883.42 million.

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