ACWA Power, a Saudi Arabia-based power plant developer, has secured an $800 million refinancing facility for its subsidiary, Rabigh Arabian Water and Electricity Company (RAWEC).
According to ACWA Power, the proceeds will be used by RAWEC for a variety of financial commitments, including the prepayment of its existing senior debt facility, financing expenses, and general business objectives, including dividend distribution.
The funds were raised from local banks and have a tenor of 8.5 years maturing in 2030. The total outstanding amount of existing senior debt and accrued interest which is being paid using the proceeds of the new facility is $763 million.
The new financing facility is expected to result in savings in financing costs for RAWEC, the statement said. The $800 million senior financing facility is expected to be drawn down prior to the end of Dec 2021.
RAWEC is an independent water, steam & power producer that supplies to an integrated refinery and petrochemical complex owned by Petro Rabigh, a company jointly owned by Saudi Aramco and Sumitomo Chemical. ACWA Power holds an indirect 99 percent equity stake in RAWEC through its wholly-owned subsidiaries.
Earlier this week, ACWA Power, which is partly owned by Saudi Arabia’s sovereign Public Investment Fund (PIF), closed an agreement for $1.33 billion in senior debt for a multi-utilities project at Saudi Arabia’s Red Sea project.
RAWEC owns and operates a conventional thermal power plant and desalination facility with a total installed capacity of 840 MW Power, 6,110 Tonnes per hour (t/h) Steam and 12,000 t/h Water, situated approximately 160 km north of Jeddah, located within the Rabigh Complex.
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