ACWA Power announces SAR 2B financial close for Ras Mohaisen IWP

ACWA Power says financing secured from BSF, Riyad Bank, SAIB and Standard Chartered

ACWA Power Co. said Ras Mohaisen First Water Desalination Co. (Ras Mohaisen IWP) achieved financial close, with funds secured on Dec. 24 from a consortium of local and international banks comprising Banque Saudi Fransi (BSF), Riyad Bank, The Saudi Investment Bank (SAIB), and Standard Chartered Bank.

In a filing to Tadawul, the company said the financing amounts to SAR 2.07 billion ($553.2 million) with a tenor of 29.5 years.

It noted that the guarantees provided are limited to ACWA Power’s equity commitment and its proportional share of the debt service coverage account, early production revenues, reserve capital, and the restricted account.

ACWA Power stated that it holds a 45% ownership stake in the project company, Ras Mohaisen IWP, which will develop a seawater reverse osmosis (SWRO) desalination plant.

No related parties are involved in the agreements, the company added.

The company explained that the financing will be used to fund the development and construction of a desalination plant with a capacity of 300,000 cubic meters per day using reverse osmosis technology, along with related infrastructure and facilities, including water storage tanks with a total capacity of 600,000 cubic meters.

ACWA Power added that the project facilities are located in the western region of Saudi Arabia, approximately 300 kilometers south of Makkah, on the Red Sea coast.