Financial institution APICORP and ACWA Power, a Saudi developer, have signed a USD125 million five-year Shariah-compliant corporate facility to support ACWA Power’s future growth pipeline.
The agreement is aligned with APICORP and ACWA Power’s shared mission of accelerating the energy transition in the MENA region and globally through green technologies.
The facility has been earmarked for funding ACWA Power’s investments in renewable projects in the countries it operates in, as well as future high-growth markets.
The five-year tenor is well suited for financing a typical renewable project’s initial life cycle, enabling greater financial strength during the early development phase.
The APICORP facility can also be utilised as a revolver loan during the initial three-year period, whereby it could be settled and redrawn as per ACWA Power’s liquidity needs, enabling the company to recycle capital and increase financial capacity for further portfolio development and growth.
Last October, APICORP provided an USD70.5 million commitment to support ACWA Power and other co-sponsors to develop Phase V of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, the world’s largest single-site solar park.