ACWA Power-led JV secures $1.33 bln for Red Sea project utilities
Saudi Arabian utility developer ACWA Power said on Tuesday it closed an agreement for $1.33 billion in senior debt for a multi-utilities project at Saudi Arabia's planned multi-billion dollar Red Sea project.
The facilities were arranged as non-recourse project finance and will be used to construct, manage and operate power, desalination, waste-water treatment, solid waste processing, district cooling plants and communication infrastructure.
The utilities project is a joint venture, in which ACWA hold a 50% stake, with SPIC Huanghe Hydropower Development Company and Saudi Tabreed District Cooling Company.
The JV will eventually transfer the project systems to the Red Sea Utilities Company under a 25-year offtake contract.
The Red Sea project is a luxury resorts development planned to have 16 hotels ready by the end of 2023, part of the kingdom's plans to boost tourism under Vision 2030, a programme meant to build new sectors and reduce reliance on hydrocarbon revenues.
It is being developed by the Red Sea Development Company, which is owned by Saudi Arabia's powerful sovereign Public Investment Fund, which is at the centre of Vision 2030 plans.
The financing was from Al Rajhi Banking and Investment Corporation (1120.SE), Banque Saudi Fransi (1050.SE), Saudi British Bank (1060.SE), Arab Petroleum Investment Corporation (APICORP), Standard Chartered Bank (STAN.L) and Riyad Bank (1010.SE).
"In addition, the JV has secured Equity Bridge Loan facilities from Bank AlBilad, Bank Al-Jazira and Arab National Bank and a Working Capital and VAT Facility for $93.4million from Al Rajhi Banking and Investment Corporation," ACWA said in a stock exchange filing.