ACWA secures 1st Renminbi loan from Bank of China for Uzbek solar project

By Arya M Nair, Official Reporter
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ACWA secures 1st loan from Bank of China for Uzbek Solar PV
Representational Image | Image Courtesy: Gustavo Fring @ Pexels

Saudi-listed ACWA Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, has received an equity bridge loan from Bank of China worth $80 million.

The loan is to finance ACWA’s Tashkent 200MW Solar PV and 500MWh BESS in Uzbekistan. The equity bridge loan consists of two tranches, 50 percent in Renminbi (RMB) and 50 percent in USD.

The loan marks the first RMB loan cooperation between a Chinese bank and a Saudi enterprise. This transaction culminated the initial agreement reached during the 3rd BRF summit in October 2023 where ACWA Power was represented by its chairman as a keynote speaker.

Abdulhameed Al Muhaidib_ACWA secures loan from Bank of China
Abdulhameed Al Muhaidib
CFO – ACWA Power

“We have enjoyed a long and mutually beneficial partnership with Bank of China since 2009. This milestone is a strong signifier of the confluence between Saudi Arabia’s Vision 2030 and China’s Belt and Road initiative, and we are delighted to deepen our cooperation with Bank of China to bring renewable energy at competitive tariffs to our key markets including Uzbekistan.”

ACWA Power and its affiliates have maintained extensive cooperation with Chinese entities for more than 15 years. Chinese companies have invested more than $10 billion in ACWA Power projects since the company’s inception.

General manager of the Bank of China Mr. Pan Xinyuan said that, “I believe that the Belt and Road Initiative is in harmony with Saudi Arabia’s Vision 2030. Bank of China will further leverage its strengths to support the cooperation between Saudi enterprises like ACWA Power and their Chinese partners for win-win objectives. Looking ahead, the Bank of China will continue to improve financial connectivity to push the Belt and Road economies on a track of sustainable and high-quality development.”

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