ACWA Power, a private water desalination company, a leader in the energy transition and a first mover into green hydrogen, has completed the refinancing of the Rabigh 3 Independent Water Project (IWP). In a press release, ACWA said the refinancing was executed through a capital-markets-led approach, anchored by the issuance of a long-term senior secured project bond that achieved a high investment-grade credit rating from one of the top global rating agencies.
Rabigh 3, Saudi Arabia’s 600,000 m³/day seawater reverse osmosis desalination plant serving the Makkah region has delivered strong performance, with availability levels exceeding 99%, reinforcing its importance to national water security.
The refinancing was anchored by KKR as the largest lender and joined by other leading global investors, including Barings, Hong Kong Mortgage Corporation, Clifford Capital, Sumitomo Mitsui Trust Bank, and SBI Shinsei Bank, with regional support from Riyadh Bank and Abu Dhabi Commercial Bank (ADCB). The refinancing represents ACWA Power’s first alignment with IFC Blue Finance Guidelines, reinforcing the plant’s strong operational performance while supporting Saudi Arabia’s Vision 2030 infrastructure goals.
Leadership View
The rating reflects Rabigh 3 IWP’s strong contractual framework, stable and predictable cash flows, robust operational performance, and ACWA Power’s proven track record as sponsor, developer, and operator of essential infrastructure assets.
Marco Arcelli, Chief Executive Officer of ACWA Power, commented: “The transaction highlights ACWA Power’s continued innovation in infrastructure financing, combining capital-markets instruments with strong project-level credit and global institutional participation. By meeting international rating agencies’ and debt investors’ expectations, ACWA Power has reinforced the bankability of large-scale desalination projects and expanded access to long-term funding for essential infrastructure. The refinancing further supports our leadership in desalination as we continue providing more than half of Saudi Arabia’s desalinated water capacity. We thank the Saudi Water Partnership Company (SWPC) for its cooperation and support throughout this process.”
The new transaction replaces the project’s previous debt facility with a diversified financing structure that broadens the investor base and enhances long-term funding resilience. It also highlights ACWA Power’s ability to structure complex financings that meet the requirements of global institutional investors while aligning with international sustainability standards.
Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, also commented: “Rabigh 3 IWP is a cornerstone asset for water security in the Kingdom, and the strong participation from international investors reflects its quality, reliability, and long-term value. This transaction demonstrates ACWA Power’s commitment to responsible finance, sustainable water infrastructure, and long-term environmental stewardship. We’re very proud to issue our first-ever blue bond that attracts new international investors to our Saudi fleet.”
