ACWA Power lands funding for 4.55 GW of Saudi solar projects

Saudi electricity producer and water desalination company ACWA Power Co (TADAWUL:2082) has secured USD 2.3 billion (EUR 2.13bn) of debt financing for the construction of three large-scale solar projects in the Kingdom.

The financing will go for the Ar Raas 2, Saad 2 and Al Kahfah solar photovoltaic projects which will be located in the central and northern regions of Saudi Arabia.

The three solar park schemes with a combined capacity of 4.55 GW have an aggregate investment cost of USD 3.4 billion.

The funds were provided by a consortium of local, regional and international banks including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, Saudi Awwal Bank and HSBC, ACWA Power said in a stock exchange filing.

ACWA Power is the majority owner with an equity stake of 50.1% in each of the three projects while Badeel, a wholly owned company by the Public Investment Fund (PIF), holds the remaining 49.9% stakes.

The announcement marks further progress in ACWA Power's solar ambitions in Saudi Arabia. At the start of 2024, the developer announced that the 1.5-GW Sudair solar power plant located about 120 km north of the capital Riyadh had become fully operational.

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