PROJECTS: ACWA Power secures $2.9bln funding for 3,010MW Qurayyah IPP

Staff Writer

ACWA Power Company said Hajar Two Electricity Company, an affiliate, has achieved financial close on the Qurayyah independent power producer (IPP) expansion project in the Eastern province of Saudi Arabia.

The 10.8-billion-Saudi riyal ($2.9 billion) loan will be used to develop, build, own and operate a  3,010-megawatt (MW) combined-cycle gas turbine (CCGT) plant, the company said in a statement to the Saudi stock exchange on Sunday.

The lending group includes Abu Dhabi Commercial Bank, Ajman Bank, Alinma Bank, Arab National Bank, Banque Saudi Fransi, Boubyan Bank, Commercial Bank of Dubai, Eurobank, HSBC, National Bank of Kuwait, Riyad Bank, Saudi Awwal Bank, Standard Chartered Bank, Sumitomo Mitsui Trust Bank, Korea Development Bank, Saudi Investment Bank and Saudi National Bank.

ACWA Power holds a 40 per cent stake in the project.

The financing has a duration of nearly 28 years, with ACWA Power guarantees limited to its standby equity and reserve account, the statement said.  

(Editing by Anoop Menon) (anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.