RIYADH: Saudi utility developer ACWA Power has signed financing agreements valued at SR9.7 billion ($2.58 billion) with a consortium of banks to develop three large-scale solar projects in the Kingdom.

In a statement to Saudi stock exchange Tadawul, the Public Investment Fund-backed firm said that these projects, located in Haden, Muwyah, and Al-Khushaybi in the Makkah and Qassim provinces, will have capacities of 2,000 megawatts, 2,000MW, and 1,500MW, respectively.

The financing agreements were signed by Buraiq Renewable Energy Co., Moya Renewable Energy Co., and Nabah Renewable Energy Co. These firms will be owned by ACWA Power, Badeel — a subsidiary of PIF, and Saudi Aramco Power Co.

ACWA Power owns a 35.1 percent stake, while Badeel holds a 34.9 percent stake in each project company.

The development underscores Saudi Arabia’s growing role in the renewable energy sector, with the Kingdom aiming to produce 130 gigawatts of green energy by the end of the decade.

The Kingdom has heavily invested in diversifying its energy mix toward renewable sources to meet its pledge to cut carbon emissions and promote sustainable development. By 2030, the country aims to source at least 50 percent of its electricity from renewables.

The financing alliance includes a mix of local, regional, and international banks such as Banque Saudi Fransi, Emirates NBD, and First Abu Dhabi Bank, as well as HSBC, Mizuho Bank, and Riyad Bank, Saudi National Bank and Standard Chartered Bank.

According to the statement, the funding duration is 27.3 years, with ACWA Power’s guarantee limited to its equity bridge loan and standby equity.

ACWA Power, listed on Saudi Arabia’s main market, is key in driving the Kingdom’s green energy initiatives and is expanding globally, targeting high-growth economies.

In a separate disclosure, ACWA Power announced it has engaged Citigroup Saudi Arabia, SNB Capital, and J.P. Morgan Saudi Arabia as financial advisers for a planned $7.12 billion capital raise.

The capital hike will support the company’s new growth strategy, approved in 2023, aiming to triple operations by 2030.

In August, ACWA Power reported a net profit of SR926.79 million for the first half of the year, a 35.46 percent increase compared to the same period in 2023.

The company attributed the profit rise to higher revenues, increased profit share from equity-accounted investees, and higher finance income.