$300m funding success for Saudi Acwa Power

14/11/2011 00:00 AST

ACWA Power announced the successful closing of its up to $300 million inaugural corporate credit facility, structured on Murabaha basis, with the addition of two new participant banks.

The closing of the facility is achievement of yet another milestone for ACWA Power, the company announced.

In addition to being the maiden medium-term Murabaha facility at the corporate level, the fact that it was secured by its own balance sheet without any shareholder credit support is a testament to the confidence in ACWA Power's capability, capacity and credit standing, the company said in a press release received here on Sunday.

ACWA Power chose to raise the facility from international banks mainly to consolidate its core banking relationships outside Saudi Arabia as well, said its Chief Finance Officer Rajit Nanda.

"The fact that we obtained the commitment of six major international banks toward this dollar-denominated facility at the height of the European sovereign debt crisis and the ensuing adverse impact on market liquidity and risk premiums, is sure evidence of ACWA Power's financial adequacy, credit standing and sound management," said Nanda.

Paddy Padmanathan, president and CEO of ACWA Power, said: "The timely closing of the Murabaha facility will fuel our growth plans outside Saudi Arabia to help treble our power capacity to 30,000 MW and more than double water production in the next four years. This year witnessed a quantum leap toward this target with the signing of the power purchase agreement in September for the largest gas-fired power plant in the world, the 3,927 MW Qurayyah IPP."

J. P. Morgan Limited (MLA) and MayBank Berhad (MLA) have joined Standard Chartered Bank (Bookrunner & MLA), Citi (Bookrunner & MLA), Bank of America Merrill Lynch (MLA), and Mizuho Corporate Bank Nederland N.V. (MLA).

"We are pleased to be part of ACWA Power's expansion plans, and to support its future progress," Ahmet Bekce, banking head for the Middle East at Citi.

Bekce said ACWA Power is clearly an upcoming champion in the MENA power and water utility space.

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