Acwa, Saudi Energy announce financial closure for Rabigh 2 expansion project

The 2,313.5-MW combined-cycle power plant is located in western Saudi Arabia and is designed to be carbon-capture ready.

In separate statements to Tadawul, the companies said the financing was secured on Oct. 1, 2026, for SAR 9.69 billion, with a tenor of approximately 34 years.

The two companies said they provided limited guarantees covering their respective shares of the reserve liquidity and reserve account required under the financing.

The financing was provided by a consortium of local, regional, and international lenders, including Alinma Bank, Riyad Bank, Saudi Awwal Bank (SAB), Saudi National Bank (SNB), Abu Dhabi Commercial Bank (ADCB), Boubyan Bank, Commercial Bank of Dubai, China Minsheng Banking Corp. Ltd. – Hong Kong Branch, HSBC Middle East Ltd., Industrial and Commercial Bank of China, Industrial Bank Co. Ltd. – Beijing Branch, National Bank of Greece (Cyprus) Ltd., Standard Chartered Bank (Taiwan) Ltd., and Sumitomo Mitsui Trust Bank Ltd. – London Branch.

Both companies added that the financing will fund the development, construction, ownership, and operation of the combined-cycle gas-fired power plant.

They expect the project to have a financial impact upon the start of commercial operations at the full plant in Q2 2029.

Each company holds a 40% stake in the project.

Both companies and SNB are related parties, the statements added.

According to data available with Argaam, Acwa and Saudi Energy signed a power purchase agreement (PPA) with the Saudi Power Procurement Co. (SPPC) in April for the Rabigh 2 CCGT IPP Expansion Project in Makkah, valued at SAR 11.5 billion.

The project has a generation capacity of 2,313.5 MW and is designed to be carbon-capture ready.

In its Q2 2026 investor presentation, Acwa said commercial operations at the project are expected to begin in Q2 2029.