22 Aug ACWA Power expands revolving credit facility
ACWA Power has announced the increase of its revolver facility by US$160 million.
The total amount increases the 2015 revolver facility, which will continue to stand and now totals to $349 million. This also enhances the total Revolving facilities at ACWA Power’s disposal to $929 million.
The revolver facility’s enhancement will solely be funded by Saudi Hollandi Bank (SHB). The facility’s availability period is until the third quarter of 2020.
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 (in SAR equivalent) of revolving facilities stands to substantially enhance our liquidity base,” added Al Sharhan. “This is testament to the confidence that banks have in ACWA Power. We are grateful to SHB for extending the most recent facility.”
The 2015 facility strengthened the existing revolving facilities base by $189 million.
The commitments for that facility were divided 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 enhances the precedent that the revolver facilities set in terms of pricing, structure and documentation and favourable with both local and regional peers.
Kashif Rana, CEO of ACWA Power noted: “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 MUSD (in SAR equivalent) 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.”