ACWA Power secures USD$100 million revolving credit facility from China Construction Bank (DIFC Branch)
Dubai: Gulf Tech News
ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants worldwide, has recently signed a three-year revolving credit facility (RCF) agreement with China Construction Bank (DIFC Branch) (the “Bank”), a Chinese state-owned lender. The agreement provides ACWA Power with access to a USD$100 million credit facility that will support the company’s strategic plans to scale its power and water generation portfolio in the Middle East and the Belt & Road countries and contribute to the social and economic development of the communities it invests in and serves.
Commenting on the announcement, Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, 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.”
“Most importantly, it goes to show the confidence that financiers have in our business performance and in our ability to deliver large-scale projects of transformative social and economic value,” he added.
The revolving facility further diversifies ACWA Power’s financing sources and enables it to continue to deliver low-carbon utility infrastructure for regions including the Middle East and Belt & Road Initiative countries such as Uzbekistan and Kazakhstan.
“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,” said Yuan Shengrui, Senior Executive Officer of China Construction Bank (DIFC Branch). “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.”
ACWA Power and China Construction Bank have been engaged in comprehensive collaboration since 2016, with the bank’s involvement in financing significant projects such as the 2,400MW Hassyan power plant in the UAE – jointly developed by a consortium of China’s Harbin Electric International and ACWA Power, and Dubai Electricity and Water Authority (DEWA) – as well as the 485MW Zarqa gas power plant in Jordan, and the 1500MW Sirdarya CCGT power plant in Uzbekistan. Additionally, by utilizing RMB related services and products provided by the Bank, ACWA Power has strengthened its collaboration with Chinese investors in renewable energy projects under the Belt and Road Initiative.
Since 2009, Chinese financiers have contributed a total of US$10 billion across ACWA Power’s global project portfolio, while Chinese EPC contractors, suppliers, and financiers have participated in 47 projects, covering landmark renewable and seawater desalination projects worldwide.
