ACWA signs financing take care of Natixis for up to US$ 2bn of projects
- Saudi solar developer ACWA Power has signed a memorandum of understanding (MoU) with Natixis Corporate & Investment Banking (Natixis CIB) that will certainly see the companions explore possibilities to create projects, consisting of renewable resource plants.
It is anticipated that Natixis CIB, a subsidiary of French bank Groupe BPCE, will certainly fund as much as US$ 2 billion over 2 years for ACWA Power's future project pipe.
The agreement continues a partnership in between both companions that has formerly seen Natixis underwrite ACWA Power solar projects consisting of the 300MW Sakaka plant in Saudi Arabia as well as the 900MW fifth stage of the Mohammed container Rashid Al Maktoum park in Dubai.
Natixis CIB also functioned as monetary advisor and joint bookrunner for ACWA Power's current initial public offering, in which it elevated US$ 1.2 billion. Proceeds from the listing will be used to fund ACWA's future projects in the energy and water desalination industries over the following 5 years.
"This MoU signed today shows our common commitment to progressing the renewable resource and also decarbonisation aspiration in the markets we serve by increasing cost-competitive funding services," claimed Paddy Padmanathan, Chief Executive Officer of ACWA Power.
The offer adheres to ACWA signing a US$ 125 million facility with development bank Arab Petroleum Investments Company (APICORP) earlier this year to support the growth of its renewables portfolio, while months later on it safe US$ 114 million to money the building of a 200MW solar plant in Egypt.
ACWA Power was among the shortlisted prospective buyers in Saudi Arabia's latest solar tender for 1.2 GW of ability, which featured a surge in costs contrasted to previous tenders in the country.