ACWA Power gets $344m loan for Dubai solar project
Three banks provide finance for 200MW plant, says CEO 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.