ACWA Power to enhance revolver facilities by $160m
ACWA Power has announced plans to enhance its revolver facility by a further $160m, taking its total value to $929m
ACWA Power has announced plans to enhance its revolver facilities by a further $160m (SAR600m).
The injection increases the Saudi Arabian energy firm’s 2015 revolver facility, which will continue to stand and now totals $349m (SAR1.31bn), and brings the total value of ACWA Power’s revolver facilities to $929m.
The enhancement will be solely funded by Saudi Hollandi Bank (SHB). The facility’s availability period extends until Q3 2020, and is structured on the sharia-compliant commodity murabaha structure.
Thamer Al Sharhan, managing director of ACWA Power, commented: “With our rapid growth has come increased business requirements and this facility will help expand our war chest to offer incremental liquidity in anticipation of further projects.
“The availability of close to $1bn, in SAR equivalent, of revolving facilities stands to substantially enhance our liquidity base. This is testament to the confidence that banks have in ACWA Power. We are grateful to SHB for extending the most recent facility,” he added.
ACWA Power’s 2015 revolver facility enhanced its existing revolving facilities base by $189m (SAR709m). The commitments for that facility were split between three relationship banks: Arab National Bank, Bank Al Bilad, and SHB, which is also acting as the investment agent.
The new facility strengthens the precedent that the revolver facilities set in terms of pricing, structure, and documentation, according to ACWA Power.
Kashif Rana, the firm’s chief financial officer, said: “We’re delighted with the response we’ve received from the house banks in the kingdom, which reinforces the positive relationship we have historically enjoyed with them.”