Saudi Arabia’s Acwa Power, a leader in power generation and desalination, plans to increase its revolving facility by $160 million, enhancing the total revolving facilities at the company’s disposal to $929 million.

Saudi Arabia’s Acwa Power, a leader in power generation and desalination, plans to increase its revolver facility by SR600 million ($160 million), enhancing the total revolving facilities at the company’s disposal to SR3,484 million ($929 million).

With this, the 2015 revolver facility, which will continue to stand, now totals SR1,309 million ($349 million).

The facility’s enhancement will be solely funded by Saudi Hollandi Bank (SHB). The facility’s availability period is until the third quarter of 2020 and is structured on a shariah compliant commodity murabaha structure.

Thamer Al Sharhan, managing director of Acwa Power, said: “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 a billion dollars 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.

The 2015 revolver facility enhanced the existing revolving facilities base by SR709 million. The commitments for that facility were split between three relationship banks: Arab National Bank, Bank Al Bilad, and Saudi Hollandi Bank, 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, with the new facility comparing favourably with both local and regional peers.

Kashif Rana, chief financial officer at Acwa Power 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.”

“A war chest of $929 million will help strengthen the balance sheet and creates substantial incremental liquidity to our capital structure as well as optimizes our cash flow utilization  as we continue to grow at a rapid pace with committed capital spend in the coming years. We would like to extend our deepest thanks to Saudi Hollandi Bank for enhancing our ability and flexibility to do so.”Rana added. – TradeArabia News Service