Riyadh – Mubasher: ACWA Power Company signed financing agreements for Al Shuaibah 1 and Al Shuaibah 2 photovoltaic (PV) projects at a combined investment of SAR 8.30 billion ($2.20 billion).

The solar projects are funded through a mix of long-term debt and equity, according to a bourse filing.

Each project covers the development, design, permitting, engineering, procurement, construction, testing, ownership, insurance, operation, and maintenance.

The total financing consists of SAR 6.10 billion ($1.60 billion) in senior debt, including a SAR 1.70 billion ($450 million) loan from the National Development Fund (NDF) on behalf of the National Infrastructure Fund (NIF).

This is in addition to SAR 4.40 billion ($1.20 billion) US-dollar denominated commercial facility from a consortium of regional and international lenders, such as Bank Saudi Fransi, First Abu Dhabi Bank (FAB), Mizuho Bank, Riyad Bank, Saudi National Bank (SNB), Standard Chartered Bank, and Saudi Investment Bank (SAIB).

The financing consortium included Electricity Holding Company (Badeel), which is wholly owned by the Public Investment Fund (PIF) and Saudi Arabian Oil Company (Aramco), with ACWA Power holding a 35% equity stake.

In the first quarter (Q1) of 2023, ACWA Power generated a 77.63% hike in net profit after Zakat and tax to SAR 269.73 million, compared to SAR 151.85 million as of 31 March 2022.