ACWA secures Bank of China debt for Uzbek solar

Apr 16, 2024 11:03 AM ET
  • ACWA Power secures historic debt financing deal with Bank of China for 200-MW solar project in Uzbekistan, marking a milestone in Saudi-Chinese collaboration.

ACWA Power Co has secured a debt financing deal with the Bank of China for a 200-MW solar project with battery storage in Uzbekistan. The Riyadh-based company signed an equity bridge loan agreement worth USD 80 million, with funding to be disbursed in two tranches in Chinese renminbi and US dollars. The project in the Tashkent province will consist of 200 MW of solar PV panels and a 500 MWh battery energy storage system.

This financing marks the first collaboration between a Chinese bank and a Saudi enterprise. ACWA Power's larger portfolio in Uzbekistan includes 1.4 GW of solar and 1.2 GW of battery storage, following deals signed with the government of Uzbekistan a year ago.

What is the significance of ACWA Power's debt financing deal with Bank of China?

  • The debt financing deal between ACWA Power and Bank of China signifies a growing partnership between Chinese financial institutions and Saudi renewable energy companies.
  • This deal highlights the increasing interest of Chinese banks in financing renewable energy projects in emerging markets like Uzbekistan.
  • ACWA Power's successful securing of funding for the 200-MW solar project with battery storage demonstrates the company's strong track record in developing sustainable energy projects.
  • The project in Uzbekistan will contribute to the country's goal of increasing renewable energy capacity and reducing reliance on fossil fuels.
  • ACWA Power's expanding portfolio in Uzbekistan, including 1.4 GW of solar and 1.2 GW of battery storage, showcases the company's commitment to driving the transition to clean energy in the region.

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