Acwa announces financial close of $1.3bn Red Sea debt facilities
OIL AND GAS NEWS
Saudi-based International Company for Water and Power Projects (Acwa Power) has announced the dry financial close for the $1.33 billion senior debt facilities for the Red Sea Multi-Utilities Project.
The project is a joint venture between Acwa Power, Spic Huanghe Hydropower Development Company and Saudi Tabreed District Cooling Company, with Acwa Power holding a 50% equity stake.
The scope of work includes the construction, management and operations of power, desalination, waste-water treatment, solid waste processing, district cooling plants and communication infrastructure for the Red Sea Project.
As per the deal, the JV will complete the development, financing, design, engineering, construction, procurement, manufacturing, testing and commissioning, operation and maintenance and eventual transfer of the Project Systems and associated facilities, under a 25-year multi-utilities offtake contract with The Red Sea Utilities Company.
This project serves the world’s most ambitious regenerative tourism project and has been designed to offer access to some of Saudi Arabia’s most important cultural treasures while protecting, preserving and enhancing the local environment.
The dry financial close was arranged on a non-recourse project finance basis by a consortium of financiers comprising Al Rajhi Banking and Investment Corporation, Banque Saudi Fransi, The Saudi British Bank, Arab Petroleum Investment Corporation (APICORP), Standard Chartered Bank, and Riyad Bank.
In addition, the JV has secured equity bridge loan facilities from Bank AlBilad, Bank Al Jazira and Arab National Bank and a working capital and VAT facility for $93.4 million from Al Rajhi Banking and Investment Corporation.
