Saudi Arabia-based power plant developer, ACWA Power has closed $1.33 billion senior debt financing for the Red Sea Multi-Utilities Project.
The senior debt facility closure was arranged on a non-recourse project finance basis by a consortium of financiers comprising Al Rajhi Banking and Investment Corporation, Banque Saudi Fransi, Saudi British Bank, Arab Petroleum Investment Corporation (APICORP), Standard Chartered Bank, and Riyad Bank.
The utility project is a joint venture (JV) led by ACWA, which holds a 50 percent stake, with Spic Huanghe Hydropower Development Company and Saudi Tabreed District Cooling Company.
The scope of work includes the construction, management and operations of power, desalination, waste-water treatment, solid waste processing, district cooling plants and communication infrastructure for the Red Sea Project.
As per the deal, the JV will complete the development, financing, design, engineering, construction, procurement, manufacturing, testing and commissioning, operation and maintenance and eventual transfer of the Project Systems and associated facilities, under a 25-year multi-utilities offtake contract with The Red Sea Utilities Company.
The JV has also secured Equity Bridge Loan facilities from Bank AlBilad, Bank Al-Jazira and Arab National Bank and a Working Capital and VAT Facility for $93.4 million from Al Rajhi Banking and Investment Corporation, ACWA said in a stock exchange filing.
The Red Sea project is a luxury resorts development planned to have 16 hotels ready by the end of 2023, part of the kingdom’s plans to boost tourism under Vision 2030, a program meant to build new sectors and reduce reliance on hydrocarbon revenues.
Related: Saudi digital marketplace Sary secures $75mn for expansion