ACWA Power, a prominent Saudi energy company, has recently announced the acquisition of a significant $80 million equity bridge loan from the Bank of China, earmarked for its energy projects in Uzbekistan.
The financing is notably comprised of an even split between the Chinese yuan and US dollars. This agreement is distinguished as the inaugural financial collaboration using the Chinese currency between a Saudi entity and a bank from China.
The funds are allocated to enhance the development of ACWA Power’s ambitious projects in Uzbekistan, including a 200 megawatt solar photovoltaic power station and a cutting-edge 500 MW per hour battery storage system.
This transaction culminated the initial agreement reached during the 3rd BRF (Belt and Road Forum) summit in October 2023, where ACWA Power was represented by its chairman as a keynote speaker,
the company stated.
Abdulhameed Al-Muhaidib, ACWA Power’s Chief Financial Officer, expressed the strategic importance of this financial milestone, aligning with both Saudi Arabia’s Vision 2030 and China’s Belt and Road initiative.
Al-Muhaidib remarked, We are delighted to deepen our cooperation with Bank of China to bring renewable energy at competitive tariffs to our key markets, including Uzbekistan.
ACWA Power’s collaboration with Chinese partners is well-established, with a history spanning over 15 years and Chinese investments in ACWA’s ventures surpassing $10 billion.
Pan Xinyuan, Bank of China’s General Manager, reinforced the synergy between the Belt and Road Initiative and Saudi Arabia’s Vision 2030, expressing the bank’s commitment to support Saudi enterprises like ACWA Power in achieving mutual objectives.
Additionally, Pan Xinyuan emphasized the bank’s ongoing efforts to enhance financial connectivity and promote sustainable, high-quality development within Belt and Road economies.
Beyond Uzbekistan, ACWA Power continues to expand its global footprint in the energy sector. The company has recently entered into an $800 million contract with Senegal’s Ministry of Water to establish a desalination plant in Dakar, assuming responsibility for the infrastructure, design, finance, construction, operation, and maintenance of the Grande Cote seawater desalination project.