APICORP extends $125m 5-year term Murabaha facility to ACWA Power
- January 5, 2021
- Posted by: Elaine Coles
- Category: Companies, Investment and Finance, Middle East
APICORP, a leading multilateral development financial institution, and ACWA Power, a leading Saudi developer, investor and operator of power generation and desalinated water plants worldwide, have announced the signing of a $125 million 5-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, which currently comprise over 15% of APICORP’s financing portfolio.
The facility will support funding of ACWA Power’s renewable projects in key markets – it 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.
ACWA Power described the five-year tenor as “well suited for financing a typical renewable project’s initial life cycle”, enabling greater financial strength during the early development phase.
In addition, the APICORP facility can also be utilized as a revolver loan during the initial 3-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.
Backing the sustainable development of the Arab energy sector through innovative financing solutions continues to be a strategic priority for APICORP.
Nicolas Thévenot, Managing Director of Corporate Banking at APICORP commented:
“Backing the sustainable development of the Arab energy sector through innovative financing solutions continues to be a strategic priority for APICORP.
“Worldwide and across the MENA region, we are witnessing a concerted drive to accelerate the share of renewables in the energy mix through the adoption of innovative, low-carbon technologies and solutions. This agreement further cements our longstanding and fruitful partnership with ACWA Power to build a renewable, more sustainable energy future
Rajit Nanda, Chief Portfolio Management Officer and Acting Chief Investment Officer of ACWA Power added:
“Pursuing renewable energy development is the cornerstone of ACWA Power’s growth strategy, and we are focused on enabling transformative solutions to help reduce carbon footprint and increase the share of renewable energy in the Kingdom of Saudi Arabia, and globally. “
The timely closing of this facility has also further strengthened ACWA Power’s relationship with APICORP, a long-term financial partner.”