ACWA Power signs $125 mln 5-year financing deal with APICORP

Saudi-based utilities provider, ACWA Power, signed a $125 million (SAR 468.93 million) five-year Shariah-compliant corporate facility with Arab Petroleum Investments Corporation (APICORP), to support its future growth pipeline.

The facility has been earmarked for funding ACWA Power’s investments in renewable projects in the countries it operates in, as well as future high-growth markets.

The five-year tenor has been designed for financing a typical renewable project’s initial life cycle, enabling greater financial strength during the early development phase. Moreover, the APICORP facility can also be utilized as a revolver loan during the initial three-year period, whereby it could be settled and redrawn as per ACWA Power’s liquidity needs, enabling the company to recycle capital and increase financial capacity for further portfolio development and growth.

Baker & McKenzie Ltd., Bahrain, acted as legal advisors for APICORP on this transaction while Ashurst LLP’s Riyadh office advised ACWA Power.