ACWA Power signs $125m finance deal to fund its pipeline of future projects

ACWA Power signs $125m finance deal to fund its pipeline of future projects
An Acwa Power-generating windmill in Jbel Sendouq, on the outskirts of Tangier, Morocco, June 29, 2018. (Reuters)
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Updated 05 January 2021

ACWA Power signs $125m finance deal to fund its pipeline of future projects

ACWA Power signs $125m finance deal to fund its pipeline of future projects
  • The agreement aligns with the common goal of APICORP and ACWA Power to accelerate the energy transition in the MENA region and globally through green technologies
  • The company is 50 percent owned by the Public Investment Fund and is one of the main agencies for the Kingdom’s initiatives in domestic and global renewable energy

JEDDAH: ACWA Power, the Riyadh-headquartered developer and operator of power generation and desalinated water production plants, has signed a $125 million financing deal with the Arab Petroleum Investments Corporation (APICORP), it was announced on Monday.

The five-year Shariah-compliant corporate facility will be used by ACWA Power to develop its pipeline of future projects.

The agreement aligns with the common goal of APICORP and ACWA Power to accelerate the energy transition in the MENA region and globally through green technologies, which currently constitute more than 15 percent of the financing portfolio of APICORP.

The facility will be used to finance investments by ACWA Power in renewable projects. The company is 50 percent owned by the Public Investment Fund and is one of the main agencies for the Kingdom’s initiatives in domestic and global renewable energy, and high-tech water desalination processes.

Managing director of corporate banking at APICORP, Nicolas Thévenot, said: “Backing the sustainable development of the Arab energy sector through innovative financing solutions continues to be a strategic priority for APICORP.”

He added: “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. This agreement further cements our longstanding and fruitful partnership with ACWA Power to build a renewable, more sustainable energy future.”

ACWA Power’s Chief Portfolio Management Officer and Acting Chief Investment Officer Rajit Nanda said: “Pursuing renewable energy development is the cornerstone of ACWA Power’s growth strategy, and 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. 

“The timely closing of this facility has also further strengthened ACWA Power’s relationship with APICORP, a long-term financial partner.”

Last month, Saudi Arabia and Azerbaijan signed groundbreaking agreements for $300 million worth of renewable energy projects in the Caspian country. ACWA Power will develop Azerbaijan’s first wind power development in collaboration with local entities, in three deals that could herald further joint energy projects between the two countries.


IMF: Iraq has requested emergency assistance

IMF: Iraq has requested emergency assistance
Updated 2 min 16 sec ago

IMF: Iraq has requested emergency assistance

IMF: Iraq has requested emergency assistance
  • The OPEC member’s economy has only a small manufacturing base and almost all goods are dollar-priced imports

Iraq has requested emergency assistance from the International Monetary Fund and talks are ongoing between the parties, the IMF said late on Sunday.
Iraqi Finance Minister Ali Allawi told Bloomberg News earlier that Iraq was in talks with the IMF for a $6 billion loan package.
“The Iraqi authorities have requested emergency assistance from the IMF under the Rapid Financing Instrument, and indicated their intention to also request a longer-term arrangement with the Fund in support of planned economic reforms,” an IMF representative said in an emailed statement.
“Discussions of the authorities’ request for emergency assistance are ongoing.”
The IMF’s Rapid Financing Instrument provides quick financial assistance, which is available to all member countries facing an urgent balance-of-payments need.
Financial assistance under the RFI is provided without the need for a full-fledged program or review, according to the IMF website https://bit.ly/3c6YubX.
Iraq may ask for an additional $4 billion in low-cost loans through another program linked to government reforms, Allawi said on Sunday.
Iraq devalued the dinar last month after a collapse in global oil prices, a major source of Iraq’s financial resources.
Allawi told Bloomberg that Iraq also planned other types of funding to help plug the budget gap. Once the spending plan was approved, the government would move to issue $5 billion in domestic bonds to expand its financial base.
The OPEC member’s economy has only a small manufacturing base and almost all goods are dollar-priced imports.