Saudi Arabia’s ACWA Power expands revolving credit facility
Saudi Arabia’s power and water project developer, ACWA Power, announced on Sunday that it is increasing a revolving credit facility, which it secured last year, by SAR600 million ($160m), ultimately increasing its total value to SAR1.3 billion.
According to ACWA, the additional funds will be solely provided by Saudi Hollandi Bank (SHB), with the facility available until the third quarter of 2020.
“With our rapid growth has come increased business requirements and this facility will help expand our war chest to offer incremental liquidity in anticipation of further projects,” said Thamer Al Sharhan, Managing Director of ACWA Power.
“The availability of close to a billion dollars (in SAR equivalent) of revolving facilities stands to substantially enhance our liquidity base. This is testament to the confidence that banks have in ACWA Power. We are grateful to SHB for extending the most recent facility,” Al Sharhan added.
The company said the facility is structured on a shariah-compliant commodity murabaha structure.
It added that its total revolving facilities now stand at SAR3.5bn.
“We’re delighted with the response we’ve received from the house banks in the Kingdom, which reinforces the positive relationship we have historically enjoyed with them,” said Kashif Rana, Chief Financial Officer at ACWA Power, commenting on the announcement.