ACWA Power has obtained financing to help develop a $650 million desalination project in Saudi Arabia.
The transaction is funded through “limited recourse ring-fenced project financing” with Al Rajhi Bank, Abu Dhabi Islamic Bank, Riyad Bank and Mizuho Bank as initial mandated lead arrangers, the Saudi-based utility said in a statement.
Riyad Bank and Bank AlJazira also provided equity bridge loans earlier this month.
Commercial operation of the seawater reverse osmosis desalination project, known as Jubail-3A, is scheduled toward the end of 2022.
ACWA Power has also recently announced that it has completed the signing of all financing agreements for the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
Shuaa Energy 3 is the special purpose vehicle incorporated for the project, with 60 percent ownership by the Dubai Electricity and Water Authority (DEWA) and the balance split between ACWA Power and Gulf Investment Corporation (GIC), the company said in a statement.
The project involves the construction of a 900MW solar PV plant, using bi-facial panels with tracking technology at a capital cost of $564 million.
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