APICORP to support ACWA Power on renewables projects
Published by Sarah Smith,
Assistant Editor
Energy Global,
APICORP, a multilateral development financial institution, and ACWA Power, a Saudi developer, investor and operator of power generation and desalinated water plants worldwide, have announced the signing of a US$125 million 5-year Shariah-compliant corporate facility to support ACWA Power’s future growth pipeline.
The agreement is aligned with APICORP and ACWA Power’s shared mission of accelerating the energy transition in the MENA region and globally through green technologies, which currently comprise over 15% of APICORP’s financing portfolio. 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 is well suited 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 utilised as a revolver loan during the initial 3-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.
This past October, APICORP provided a US$70.5 million commitment to support ACWA Power and other co-sponsors to develop Phase V of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, UAE.
A rapidly emerging sector within the regional energy mix, APICORP forecasts that renewables will comprise just under one-third (32%) of the total value of planned and committed power projects in the MENA region for the period 2020-2024, the largest such share of any power generation source.
Baker & McKenzie Ltd., Bahrain, acted as legal advisors for APICORP on this transaction while Ashurst LLP’s Riyadh office advised ACWA Power.
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Read the article online at: https://www.energyglobal.com/special-reports/07012021/apicorp-to-support-acwa-power-on-renewables-projects/
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