ACWA Power signed a financing agreement with the Arab Petroleum Investments Company APICORP, worth $ 125 million for a period of 5 years, to support ACWA Power's future projects.
According to Arabianet, ACWA Power said in a statement that the financing agreement enhances the share of green technologies and renewable energy in APICORP's investments, which now constitute more than 15% Total current financing portfolio.
She added that the funding will be allocated to support ACWA Power's investments in renewable energy projects in the countries in which it operates, in addition to financing its investments in the high-growth markets that the company targets in the future. In line with the shared vision of APICORP and ACWA Power to support the transformation of the energy sector at the regional and global levels.
and explained that the financing through the five-year Murabaha period is commensurate with the financing requirements of typical renewable energy projects, which allows greater financial solvency during the initial development stage of such projects. .
and continued: The financing can also be used as a revolving loan during the first three years of the financing period, as it can be settled and redrawn according to ACWA Power's liquidity needs, which enables the company to Recycle capital and increase financial capacity to develop and grow the enterprise portfolio.
Last October, APICORP provided $ 70.5 million in funding to support ACWA Power and its partners to develop the fifth phase of the Sheikh Mohammed bin Rashid Al Maktoum Solar Park in Dubai In the United Arab Emirates, which is the largest solar complex in one location in the world
It should be noted that renewable energy is a promising sector in the regional energy mix, as APICORP expects to account for about a third (32%) of the total value of planned and planned electricity projects In the Middle East and North Africa region during the years 2020-2024, which is the largest share of its kind compared to other sources of electricity generation.
It is reported that Baker McKenzie's Bahrain office acted as legal advisor to APICORP in this funding, while the Ashurst LLB office from its headquarters in Riyadh In the role of legal advisor to ACWA Power.
