ACWA power inks short-term RCF with Chinese bank

Robert Leemingmultisectors26 June 2023

Saudi Arabia-based ACWA Power has inked a short-term revolving credit facility (RCF) with the China Construction Bank.

The revolving credit facility has a value of $100 million (£79m €91m), money that will be used to back the company’s growing roster of world-wide desalination, green hydrogen projects and power generation schemes.

The RCF has a three-year tenor, which is likely to be extended.

The Saudi company has often looked to China for its debt financing, with up to nine Chinese banks providing debt financing in the past – although it has looked more widely for financing too.

For example, earlier this year [2023], ACWA arranged financing worth $123 million (£99m €112m) to build a new 200MW solar plant in Egypt, named the Kom Ombo project.

Investors on that deal included the European Bank for Reconstruction and DevelopmentArab BankArab Petroleum Investments CorporationGreen Climate FundOPEC Fund for International Development, the African Development Bank (AfDB), the AfDB’s Sustainable Energy Fund for Africa.