ACWA Power Barka finishes $190m debt refinancing
Firm also secures funding for desalination expansion project
ACWA Power Barka has announced that it has finalised the refinancing of its USD $190.39 million debts using the proceeds of new non-recourse debt facilities arranged with Bank Muscat, National Bank of Oman and Arab Banking Corporation. The firm has also raised new non-recourse RO denominated debt of $43.1 million to help fund its desalination expansion project
Debt facilities arranged under the refinancing comprise a RO denominated loan facility of $162.39 million and a USD denominated facility of $28 million. Through the deal, ACWA Power Barka says that is has become the first IWPP in the entire MENA region to establish a non-recourse financing with its tenor extending beyond the term of its power and water purchase agreement (PWPA).
“ACWA Power has demonstrated its responsiveness to the needs of local and regional investors by conceptualising and realising the refinancing transaction. This unprecedented transaction provides a new unconventional project financing template for the regional IWPP landscape which should bolster investor confidence,” said Rajit Nanda, ACWA Power Barka board member, and CFO of ACWA Power.
ACWA Power Barka has a generating capacity of 456MW and a desalination plant producing 20 MIGD. The plant is located 65km north of Muscat. The firm recently agreed a 10 MIGD capacity upgrade with Oman Power and Water Procurement Company (OPWP) using reverse osmosis technology.