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ACWA Power gets $344m loan for Dubai solar project

Three banks provide finance for 200MW plant, says CEO Padmanathan.

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Paddy Padmanathan
Paddy Padmanathan

Saudi Arabia's ACWA Power is obtaining a loan of about $344mn from three banks to finance its solar energy project in Dubai, Reuters reports.

The 27-year amortising loan with an interest rate of 4% is being provided by Abu Dhabi's First Gulf Bank and two Saudi banks, National Commercial Bank and Samba Financial Group, chief executive Paddy Padmanathan told reporters on the sidelines of a business conference on Sunday.

Padmanathan said the entire project would cost about $400mn, of which the bank financing would account for 86%. "We are working towards signing by end-March," he said.

The 200MW solar plant is being built for Dubai Electricity and Water Authority (DEWA) by a consortium of ACWA and Spain's TSK.

ACWA is preparing bids for projects worth $7bn in areas from south Asia to the Middle East and North Africa and South Africa, Padmanathan said. "It is a very, very buoyant sector."

The company is awaiting regulatory approval for an initial public offer of its shares; the size of the IPO has not been finalised, he added.

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