RIYADH — APICORP, a leading multilateral development financial institution, and ACWA Power, a leading Saudi developer, investor and operator of power generation and desalinated water plants worldwide, announce the signing of a $125 million 5-year Shariah-compliant corporate facility to support ACWA Power’s future growth pipeline. The agreement is aligned with APICORP and ACWA Power’s shared mission of accelerating the energy transition in the MENA region and globally through green technologies, which currently comprise over 15% of APICORP’s financing portfolio. The facility has been earmarked for funding ACWA Power’s investments in renewable projects in the countries it operates in, as well as future high-growth markets. The five-year tenor is well suited for financing a typical renewable project’s initial life cycle, enabling greater financial strength during the early development phase. Moreover, the APICORP facility can also be utilized as a revolver loan during the initial 3-year period, whereby it could be settled and redrawn as per ACWA Power’s liquidity needs, enabling the company to recycle capital and increase financial capacity for further portfolio development and growth. Nicolas Thévenot, managing director of corporate banking at APICORP, said: “Backing the sustainable development of the Arab energy sector through innovative financing solutions continues to be a strategic priority for APICORP. Worldwide and across the MENA region, we are witnessing a concerted drive to accelerate the share of renewables in the energy mix through the adoption of innovative, low-carbon technologies and solutions. This agreement further cements our longstanding and fruitful partnership with ACWA Power to build a renewable, more sustainable energy future.” Rajit Nanda, chief portfolio management officer and acting chief investment officer of ACWA Power, said: “Pursuing renewable energy development is the cornerstone of ACWA Power’s growth strategy, and we are focused on enabling transformative solutions to help reduce carbon footprint and increase the share of renewable energy in the Kingdom of Saudi Arabia, and globally. The timely closing of this facility has also further strengthened ACWA Power’s relationship with APICORP, a long-term financial partner.” Kashif Rana, chief financial officer added: “APICORP’s $125 million facility will serve as an important funding source to support the agile and robust expansion of ACWA Power’s ‘green’ portfolio across markets. The revolving feature of this facility offers ACWA Power the flexibility to reallocate and thus optimize its utilization. We look forward to continuing our collaboration with APICORP as we actively seek to unlock renewable energy potential and deliver long-term, sustainable value to nations, backed by our strong ESG framework.” This past October, APICORP provided a $70.5 million commitment to support ACWA Power and other co-sponsors to develop Phase V of the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai, UAE, the world’s largest single-site solar park. A rapidly emerging sector within the regional energy mix, APICORP forecasts that renewables will comprise just under one-third (32%) of the total value of planned and committed power projects in the MENA region for the period 2020-2024, the largest such share of any power generation source. Baker & McKenzie Ltd., Bahrain, acted as legal advisors for APICORP on this transaction while Ashurst LLP’s Riyadh office advised ACWA Power. — SG