To strengthen its strategic partnership with ACWA Power and to promote the development of renewable energy projects amongst other infrastructural projects, in line with the directives of the China’s Belt and Road initiative, China Construction Bank (DIFC Branch), a Chinese state-owned lender has signed three-year revolving credit facility (RCF) agreement with Saudi’s ACWA Power.
With this, ACWA Power will have cess to a USD$100 million credit facility. This is in line with company’s strategic plans to scale its power and water generation portfolio in the Middle East and the Belt & Road countries and contribute to the social and economic development of the communities it invests in and serves.
Commenting on the pact, Yuan Shengrui, Senior Executive Officer of China Construction Bank (DIFC Branch), said, “The credit facility is reflective of the branch’s interest to strengthen its strategic partnership with ACWA Power and to promote the development of renewable energy projects, in line with the directives of the Belt and Road initiative. By supporting entities such as ACWA Power, we are able to make meaningful impact in the renewable energy sector, and jointly drive positive change for a greener tomorrow.”
Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power said, “The revolving credit facility by China Construction Bank (DIFC Branch) is an outcome of the ongoing collaboration between ACWA Power and Chinese entities, boosting our near-term liquidity and funding flexibility as we pursue strategic growth opportunities.” He further added, “ Most importantly, it goes to show the confidence that financiers have in our business performance and in our ability to deliver large-scale projects of transformative social and economic value.”
The revolving facility further diversifies ACWA Power’s financing sources and enables it to continue to deliver low-carbon utility infrastructure for regions including the Middle East and Belt & Road Initiative countries such as Uzbekistan and Kazakhstan.”
ACWA Power and China Construction Bank have been engaged in comprehensive collaboration since 2016, with the bank’s involvement in financing significant projects. Additionally, with RMB related services and products provided by the Bank, ACWA Power has strengthened its collaboration with Chinese investors in renewable energy projects under the Belt and Road Initiative.
Chinese financiers have contributed a total of US$10 billion across ACWA Power’s global project portfolio. while Chinese EPC contractors, suppliers, and financiers have also contributed in 47 projects, that includes significant renewable and seawater desalination projects worldwide.
