ACWA Power and TSK to sign financing for Dubai solar project

Saudi Arabia’s ACWA Power is negotiating a loan of about $344 million from three banks to finance a solar energy project in Dubai, according to its chief executive Paddy Padmanathan.

The 27-year amortising loan will be provided by Abu Dhabi’s First Gulf Bank and two Saudi banks, National Commercial Bank and Samba Financial Group.

The loan will have an interest rate of four per cent and will be 86 percent of the total investment for the project ($400 million).

Padmanathan said that financial close could be obtained by end-March.

The solar plant, to be built by a consortium of ACWA and Spain’s TSK, was ordered by Dubai Electricity and Water Authority and will have a capacity of 200 megawatts.

ACWA is awaiting regulatory approval for an initial public offer of its shares; the size of the IPO has not been finalised.