Saudi utility giant ACWA Power has finalized the refinancing of the Rabigh 3 Independent Water Project, which is situated in the western region of the Kingdom.
Rabigh 3 is a seawater desalination plant with a capacity of 600,000 cubic meters of potable water per day, through reverse osmosis technology.
Tadawul-listed company reported in a press statement that the refinance was carried out on a capital-markets-based strategy, which was pegged on the issuance of a long-term senior secured project bond.
Investment firm KKR was the largest lender in the refinancing, which was also joined by other investors such as Barings, Hong Kong Mortgage Corp., Clifford Capital, Sumitomo Mitsui Trust Bank, and SBI Shinsei Bank. Therefore, the Riyadh Bank and Abu Dhabi Commercial Bank also provided regional assistance.
ACWA Power CEO Marco Arcelli said that “The transaction highlights ACWA Power’s continued innovation in infrastructure financing, combining capital-markets instruments with strong project-level credit and global institutional participation.”
He stated that “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.”
Arcelli added that the refinancing also reflects its intention of the company to maintain its goals of supplying more than half of the desalination water capacity in Saudi Arabia.
Meanwhile, the new transaction will substitute the former debt facility of the project with a diversified financing structure that will expand the investor base and increase the funding strength of the project in the long term.
The statement further explained that the refinancing is a sign that ACWA Power is capable of structuring complex financings that satisfy the needs of institutional investors around the world, which complies with the international standards of sustainability.
Chief Financial Officer at ACWA Power, Abdulhameed Al-Muhaidib, said that “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.”
He further added that “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.”
The refinancing is the first alignment of ACWA Power with the Blue Finance Guidelines of the International Finance Corporation, as it has enhanced the excellent performance of the plant, and it contributes to the achievement of the infrastructure objectives of the Vision 2030 of Saudi Arabia.
