Dubai: Saudi Arabia’s power generation company ACWA Power secures $2.58 billion (Dh9.4 billion) in financing agreements with a consortium of banks to advance three major solar projects in Saudi Arabia.
According to a statement released to the Saudi stock exchange Tadawul, PIF-backed ACWA will develop projects in Haden, Muwyah, and Al Khushaybi, located in the Mecca and Qassim provinces.
The projects will have capacities of 2,000 megawatts, 2,000 megawatts, and 1,500 megawatts, respectively.
The financing agreements were finalised with Buraiq Renewable Energy Co., Moya Renewable Energy Co., and Nabah Renewable Energy Co. These entities will be owned by ACWA Power, Badeel (a PIF subsidiary), and Saudi Aramco Power Co.
ACWA Power holds a 35.1 per cent stake, while Badeel owns 34.9 per cent in each project company.
Saudi Arabia aims to generate 130 gigawatts of green energy by the end of the decade. Saudi Arabia is investing significantly to diversify its energy sources and reduce carbon emissions, targeting at least 50 per cent of electricity from renewables by 2030.
The financing consortium includes a mix of local, regional, and international banks such as Banque Saudi Fransi, Emirates NBD, First Abu Dhabi Bank, HSBC, Mizuho Bank, Riyad Bank, Saudi National Bank, and Standard Chartered Bank.
The funding is structured over a 27.3-year period, with ACWA Power's guarantee limited to its equity bridge loan and standby equity.
