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APICORP, ACWA Power sign $125m Murabaha facility

APICORP, ACWA Power sign $125m Murabaha facility
The agreement comes in line with the objective of APICORP and ACWA

Riyadh - Mubasher: The Arab Petroleum Investments Corporation (APICORP) and Saudi Arabia's ACWA Power have inked a five-year Shariah-compliant corporate facility worth $125 million to support ACWA's renewable projects in key markets.

The APICORP facility can be used as a revolver loan during the initial 3-year period, as it could be settled and redrawn as per ACWA’s liquidity needs, according to a press release on Tuesday.

The agreement comes in line with the objective of APICORP and ACWA to adopt more green technologies in MENA and globally.

Currently, green technologies comprise over 15% of APICORP’s financing portfolio.

Commenting on the agreement, the Managing Director of Corporate Banking at APICORP, Nicolas Thévenot, said: "Worldwide and across the MENA region, we are witnessing a concerted drive to accelerate the share of renewables in the energy mix through the adoption of innovative, low-carbon technologies and solutions."

Meanwhile, the Chief Portfolio Management Officer and Acting Chief Investment Officer of ACWA Power, Rajit Nanda, added: "We are focused on enabling transformative solutions to help reduce carbon footprint and increase the share of renewable energy in the Kingdom of Saudi Arabia, and globally."

It is noteworthy to mention that in October, APICORP has inked an agreement with Shuaa Energy 3 to finance the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai with $70.5 million.