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.