Saudi Arabia's utility developer ACWA Power has secured a refinancing facility equivalent to $800 million, denominated in US dollars and Saudi riyals.

The proceeds will be utilized by its subsidiary, Rabigh Arabian Water & Electricity Co. (RAWEC), for various financial commitments, including the prepayment of its existing senior debt facility, financing expenses and for general corporate purposes including distribution of dividends, ACWA Power said in a bourse filing on Tadawul on Thursday.

The financing was raised from local banks and has a tenor of 8.5 years maturing in 2030.

The total outstanding amount of existing senior debt and accrued interest which is being paid using the proceeds of the new facility is $763 million.

The new financing facility is expected to result in savings in financing costs for RAWEC, the statement said.

The $800 million senior financing facility is expected to be drawn down prior to the end of Dec 2021.

RAWEC is an independent water, steam & power producer that supplies to an integrated refinery and petrochemical complex owned by Rabigh Refining and Petrochemical Co. ACWA Power holds an indirect 99 percent equity stake in RAWEC through its wholly owned subsidiaries.

Earlier this week, ACWA Power, which is partly owned by Saudi Arabia's sovereign Public Investment Fund, closed an agreement for $1.33 billion in senior debt for a multi-utilities project at Saudi Arabia's Red Sea project.

(Reporting by Brinda Darasha; editing by Seban Scaria)

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