ACWA Power signs SAR 2.64B financing for wind power plant in Egypt

ACWA Power Co. signed on Dec. 30 financing agreements for the development, construction, operation and maintenance of a 1,100-megawatt wind power plant in Suez Governorate, Egypt. The project, valued at SAR 2.64 million, will be financed over a period of 20 years.

In a statement to Tadawul, the company pointed out that the investment cost is estimated at SAR 4.13 billion, with the company holding a 70% stake.

The company highlighted that a group of development financial institutions provided funding for the principal debt, including the European Bank for Reconstruction and Development, the African Development Bank (AFDB), the British International Investment Corporation, the German Investment Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).

The principal debt was financed by Standard Chartered Bank and Arab Bank through the "B" financing structure provided by the European Bank for Reconstruction and Development, the statement added.

The guarantees provided consist of a limited guarantee on ACWA Power's share of the bridge loan, liquidity reserves, development guarantees, the statement noted, adding that there are no related parties to the deal.