ACWA Power (2082) has signed financing agreements for three solar energy projects with a total investment ticket of SAR 9.7 billion (USD 2.6 billion).
Expansion
The projects are located in the Makkah and Qassim regions, with a production capacity of 2 GW for the first two projects and 1.5 GW for the third.
So What
The financing was secured through a consortium of local, regional, and international banks.
The funding agreements were inked by Buraiq Renewable Energy Company, Moya Renewable Energy Company, and Nabah Renewable Energy Company.
The respective project companies will be owned by ACWA Power, Badeel (a wholly owned subsidiary of PIF), and Saudi Aramco Power Company.
ACWA Power holds a 35.1% stake in each of the three project companies. Badeel will be a partner with a 34.9% stake.
Some context
ACWA Power is a key player in helping drive the Kingdom’s green energy transition. The country is heavily investing in diversifying its energy mix as it looks to meet its target of becoming carbon neutral.
By 2030, Saudi Arabia wants renewables to comprise 50% of its electricity mix.
Now what
ACWA Power has appointed Citigroup Saudi Arabia, SNB Capital, and J.P. Morgan Saudi Arabia as financial advisors to manage its capital increase of approximately SAR 7.125 billion through a rights issue.
The increase aims to support the company’s new growth strategy, which seeks to triple its business by 2030, necessitating a rise in annual investment commitments while maintaining a strong financial position.
