ACWA Power secures $80m bridge loan from Bank of China for Uzbekistan projects
Fund to boost Saudi utility firm’s Tashkent 200 megawatts solar photovoltaic power plant
Saudi utility firm ACWA Power has secured an $80 million equity bridge loan from the Bank of China for its Uzbekistan initiatives.
According to an official press release, the payment is split equally between Chinese yuan and US dollars, marking the first loan cooperation deal by a bank from the Asian country using its native currency involving a company from the Kingdom.
ACWA Power said the fund will boost its Tashkent 200 megawatts solar photovoltaic power plant and 500 MW per hour battery energy storage system project in Uzbekistan. “This transaction culminated the initial agreement reached during the 3rd BRF (Belt and Road Forum) summit in October 2023, where ACWA Power was represented by its chairman as a keynote speaker,” the company said in a statement. ACWA Power’s Chief Financial Officer Abdulhameed Al-Muhaidib highlighted the significance of this milestone, citing its alignment with Saudi Arabia’s Vision 2030 and China’s Belt and Road initiative.
He said: “We are delighted to deepen our cooperation with Bank of China to bring renewable energy at competitive tariffs to our key markets, including Uzbekistan.”
ACWA Power has a longstanding relationship with Chinese entities, dating back over 15 years, with investments from the Asian country in the company’s projects exceeding $10 billion. Pan Xinyuan, the general manager of the Bank of China, said: “I believe that the Belt and Road Initiative is in harmony with Saudi Arabia’s Vision 2030. Bank of China will further leverage its strengths to support the cooperation between Saudi enterprises like ACWA Power and their Chinese partners for win-win objectives.” He added: “Looking ahead, Bank of China will continue to improve financial connectivity to push the Belt and Road economies on a track of sustainable and highquality development.”
Uzbekistan is ACWA Power’s second-largest market in terms of investments, emphasizing its long-standing commitment to the country with a portfolio that includes 12 projects, 11 of which are fully renewable.
ACWA Power has been collaborating with multiple countries to develop its plants.
Earlier this month, the company signed a $800 million agreement with Senegal’s Ministry of Water to develop a desalination facility. It announced the inking of a water purchase agreement for the construction of the facility in Dakar, Senegal in a statement on the Saudi stock exchange, Tadawul.
ACWA Power will be responsible for the infrastructure, design and financing as well as construction, operation and maintenance of the Grande Cote seawater desalination plant in the West African country. The Saudi utility firm plans to lead the global energy transition, expanding to 20 countries and tripling its assets to $250 billion by 2030.
Raad Al-Saady, vice chairman, and managing director at ACWA Power, earlier told Arab News that the company is on course to grow its assets from $85 billion to $250 billion by 2030, following the strategy approved last year. “We added $15 billion in assets to our portfolio last year, and we intend to continue to grow,” Al-Saady said.
He added that the company aims to average $20 billion to $30 billion in assets under management annually from now until 2030 to achieve its goal.
Al-Saady further elaborated on ACWA Power’s strategy to foster growth through localized initiatives in each country of operation. “Our goal is to continue leading the market by enhancing local content, not just in Saudi Arabia but in every country where we operate.”
We are delighted to deepen our cooperation with Bank of China to bring renewable energy at competitive tariffs to our key markets. Abdulhameed Al-Muhaidib
ACWA Power CFO