Saudi solar developer ACWA Power has signed a memorandum of understanding (MoU) with Natixis Corporate & Investment Banking (Natixis CIB) that will see the partners explore opportunities to develop projects, including renewable energy plants.
It is expected that Natixis CIB, a subsidiary of French bank Groupe BPCE, will finance up to US$2 billion over two years for ACWA Power’s future project pipeline.
The agreement continues a relationship between the two partners that has previously seen Natixis underwrite ACWA Power solar projects including the 300MW Sakaka plant in Saudi Arabia and the 900MW fifth phase of the Mohammed bin Rashid Al Maktoum park in Dubai.
Natixis CIB also acted as financial advisor and joint bookrunner for ACWA Power’s recent initial public offering, in which it raised US$1.2 billion. Proceeds from the listing will be used to fund ACWA’s future projects in the energy and water desalination sectors over the next five years.
“This MoU signed today demonstrates our shared commitment to advancing the renewable energy and decarbonisation ambition in the markets we serve by expanding cost-competitive financing solutions,” said Paddy Padmanathan, CEO of ACWA Power.
The deal follows ACWA signing a US$125 million facility with development bank Arab Petroleum Investments Corporation (APICORP) earlier this year to support the growth of its renewables portfolio, while months later it secured US$114 million to fund the construction of a 200MW solar plant in Egypt.
ACWA Power was one of the shortlisted bidders in Saudi Arabia’s latest solar tender for 1.2GW of capacity, which featured a rise in prices compared to previous tenders in the country.