Saudi ACWA Power Secures $700M Loan for Suez Wind Farm Project
Saudi Arabia’s utility company ACWA Power has signed a $700 million (SAR 2.6 billion) financing deal for the Egypt Wind Power Plant in Suez, as stated in a filing on Tuesday.
Funding Details
The funding will support the creation, construction, operation, and upkeep of a 1,100 MW wind project in Egypt. ACWA Power owns 70% of the project, which has a total investment of $1.1 billion (SAR 4.13 billion). The financing will last for 20 years.
A group of development financial institutions provided the main loan. These include the European Bank for Reconstruction and Development, the African Development Bank, British International Investment, DEG (Deutsche Investitions), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation.
Standard Chartered Bank and Arab Bank also helped finance the project through a loan structure managed by the European Bank for Reconstruction and Development.
Project Details
In January, the ACWA Power group and the Egyptian Electricity Transmission Company (EETC) agreed to a 25-year deal to buy electricity. This wind power project will cost $1.5 billion to develop, build, and operate.
The project will be located in the Suez Gulf and Gabal El Zeit area near Ras Gharib city. ACWA Power, a Saudi company, will handle the development, financing, design, construction, operation, and maintenance of the wind power plant. EETC will be the only buyer of the electricity produced.
The project will generate enough electricity to power over one million homes and reduce about 2.4 million tons of carbon emissions each year, as stated on ACWA Power’s website.
Financial Results
In November, ACWA Power reported a 16% rise in its nine-month net profit, reaching $334.1 million (SAR 1.25 billion). This growth was mainly due to increased revenue from progress in its power generation and water desalination projects.
However, the profit growth was partly reduced by higher costs for development, provisions, write-offs, general expenses, and losses from impairments.
During this period, revenue grew by 6.4% to $1.21 billion (SAR 4.56 billion), and operational profit increased by 12.5% to $629.7 million (SAR 2.37 billion).
Published: 31th December 2024
Also Read:
Maysaa Sabrine Becomes First Woman to Lead Syrian Central Bank
Best Places to Visit in the UAE During the Festive Season
Almoosa Health’s retail IPO oversubscribed by 4x
