Saudi ACWA Power unveils $100mln RCF agreement from UAE-based Chinese bank

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Riyadh – ACWA Power has recently signed a revolving credit facility (RCF) agreement with Asian state-owned China Construction Bank (DIFC Branch), which is located in Dubai, at a total value of $100 million, according to a press release.

The three-year financing will support ACWA Power's strategic plans to improve its power and water generation portfolio across the Middle East and the Belt & Road Initiative countries like Uzbekistan and Kazakhstan, besides contributing to the social and economic development of the communities it invests in and serves.

Chief Financial Officer of ACWA Power, Abdulhameed Al Muhaidib, said: “The revolving credit facility by China Construction Bank (DIFC Branch) is an outcome of the ongoing collaboration between ACWA Power and Chinese entities, boosting our near-term liquidity and funding flexibility as we pursue strategic growth opportunities.”

Furthermore, the RCF deal diversifies the Saudi listed firm’s financing sources while enabling the company to keep delivering low-carbon utility infrastructure for the targeted regions.

For his part, Senior Executive Officer of China Construction Bank (DIFC Branch), Yuan Shengrui, noted: “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.”

Shengrui added: “By supporting entities such as ACWA Power, we are able to make meaningful impact in the renewable energy sector, and jointly drive positive change for a greener tomorrow.”

The Saudi and Chinese entities have been collaborating since 2016, with the lender's involvement in financing significant projects like the 2,400-megawatt (MW) Hassyan power plant in the UAE in addition to the 485 MW Zarqa gas power plant in Jordan.

It is worth noting that in May this year, ACWA Power penned agreements with Saudi Power Procurement Company at a total amount of SAR 12.18 billion, equivalent to $3.25 billion.

As for the Saudi company’s financial results in the first quarter (Q1) of 2023, the entity generated net profits worth SAR 269.73 million, higher than SAR 151.85 million in Q1-22.