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Saudi-based ACWA Power recognized as the world’s largest private water desalination company and a frontrunner in energy transition with a focus on green hydrogen, secured an equity bridge loan from the Bank of China amounting to $80 million to fund its Tashkent 200MW Solar PV and 500MWh BESS project in Uzbekistan.
The equity bridge loan is divided into two parts, with 50% in Chinese Yuan (RMB) and the remaining 50% in US Dollars (USD). This loan transaction represents the first collaboration involving an RMB loan between a Saudi enterprise and a Chinese bank, a commitment solidified after an initial agreement was made during the 3rd Belt and Road Forum summit in October 2023, where ACWA Power’s chairman was a keynote speaker.
Abdulhameed Al Muhaidib, ACWA Power’s Chief Financial Officer, expressed satisfaction with the long-standing partnership between ACWA Power and the Bank of China since 2009. He emphasized the significance of this milestone in aligning with the objectives of Saudi Arabia’s Vision 2030 and China’s Belt and Road initiative, aiming to facilitate the delivery of renewable energy at competitive rates to key markets, including Uzbekistan.
ACWA Power and its associated entities have maintained extensive collaboration with Chinese counterparts for over 15 years, with Chinese firms having invested over $10 billion in ACWA Power projects over the years.
Pan Xinyuan, General Manager of the Bank of China, highlighted the alignment between the Belt and Road Initiative and Saudi Arabia’s Vision 2030. He stressed the Bank of China’s dedication to utilizing its strengths to facilitate collaboration between Saudi companies such as ACWA Power and their Chinese counterparts for mutual advantage. Looking ahead, the Bank of China aims to enhance financial connectivity to foster sustainable and high-quality development in Belt and Road economies. |
