Saudi Arabia-based ACWA Power recently announced that it has raised $800 million to refinance its subsidiary Rabigh Arabian Water & Electricity Co. (RAWEC) and will use these funds to prepare existing senior debt, according to media reports. The proceeds will also be used for various financial commitments, including the prepayment of its existing senior debt facility, financing expenses, along distribution of dividends.
The total outstanding amount of existing senior debt and accrued interest which is being paid using the proceeds of the new facility is $763 million. The latest financing facility is expected to save money in financing costs for RAWEC. The $800 million senior financing facility is expected to be drawn down prior to the end of Dec 2021.
RAWEC is independent water, steam & power producer and it is also an integral refinery and petrochemical complex owned by Rabigh Refining and Petrochemical Co. Indirectly, ACWA Power holds 99 percent equity stakes in RAWEC through its wholly-owned subsidiaries. Earlier this year, ACWA Power which is partly owned by Saudi Arabia’s sovereign Public Investment Fund (PIF), where it closed an agreement for $1.33 billion in senior debt for a multi-utilities project at Saudi Arabia’s Red Sea project.
In other news, Saudi Arabia is in talks with banks to amend the terms of a $16 billion loan in 2023 and possibly reduce the size of the facility. Currently, the discussion between the ministry of finance is at an early stage and no decision has been taken yet.