ACWA Power consortium secures $680 mln loan for UAE project

A consortium comprising ACWA Power and MDC Power Holding Company LLC, an entity fully owned by Mubadala Investment Company and Federal Electricity & Water Authority (FEWA), has achieved the financial closure for the $800 million 150 MIGD Umm Al Quwain independent water project (IWP) in the UAE.

A syndicate of seven international and local lenders will provide $680 million senior debt for the development of the project, ACWA Power said in a statement.

The mandated entities include Korea Development Bank, MUFG Bank, Siemens Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, First Abu Dhabi Bank and Samba Financial Group.

A water purchase agreement with FEWA has been signed for a 35-year term. The plant is expected to be commercially operational by July 2022, the statement said.