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Saudi developer and operator of power and water plants ACWA Power announced on Thursday the financial close for the Shuaibah 3 Independent Water Producer (IWP) project with total investment cost of $821 million.
The project involves the conversion of the existing Shuaibah Independent Water and Power Plant (IWPP) into an energy-efficient Sea Water Reverse Osmosis (SWRO) desalination plant by a JV between ACWA Power and Water and Electricity Holding Company (Badeel).
ACWA Power said in a stock exchange statement that $632 million senior debt facilities were arranged on a non-recourse project finance basis from a consortium of financiers comprising Standard Chartered Bank, MUFG, ADIB, SNB, BOC, SAIB, ICBC, KDB and Warba Bank. Equity Bridge Loan facilities of $189 million was provided by SABB and Riyad bank.
In addition, ACWA Power achieved refinancing of the existing senior facility of Shuaibah IWPP, denominated in US dollar and Saudi riyals. The proceeds would be utilised for prepayment of existing senior debt facility, financing expenses and for tax purposes.
(Writing by Anoop Menon; editing by Seban Scaria)
