Utilities Middle East
Acwa gets $125mn 5-year term Murabaha
Agreement is aligned with APICORP and ACWA Power’s shared vision to accelerate energy transition in the MENA region and globally
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, announce 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 has been earmarked for funding ACWA Power’s investments in renewable projects in the countries it operates in, as well as future highgrowth 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.
Moreover, the APICORP facility can also be utilised 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.