RIYADH: Saudi Arabia’s utility provider ACWA Power has secured a $470 million senior loan facility for its subsidiary RAWEC.
The transaction’s proceeds will be used for various financial commitments, including financing expenses and for general corporate purposes such as distribution of dividends, ACWA Power said in a bourse statement.
The Saudi-listed company is seeking to optimize the capital structure of RAWEC, formally known as Rabigh Arabian Water & Electricity Co.
With a tenor of 12.5 years maturing in 2034, the drawdown of the facility is expected to take place this month, according to the statement.
The new facility, raised from local banks, will increase the financing costs for the utility developer's unit.
Most recently, ACWA Power had obtained a $125 million senior refinancing facility, in addition to an $800 million loan to achieve capital optimization for its subsidiary.
RAWEC is the captive utilities — power, water, and steam — provider to Rabigh Refining and Petrochemical Co., a joint venture formed in 2005 between Sumitomo Chemical, Japan, and Saudi Aramco, which owns, operates, and manages the Rabigh petrochemical complex.
