RIYADH: Saudi utility giant ACWA Power has secured an SR750 million ($119 million) Shariah-compliant term loan facility from Alinma Bank to fund its new headquarters in Riyadh.
The seven-year agreement reflects the bank’s confidence in the world’s largest private water desalination company, recognizing its strong financial position and strategic role in supporting the Kingdom’s Vision 2030 and energy transition goals, according to a statement.
This also aligns with the Ministry of Environment, Water, and Agriculture’s goal to meet 90 percent of Saudi Arabia’s water needs through desalination and the remaining 10 percent from ground and surface water by 2030.
In the statement, Abdulhameed Al-Muhaidib, chief financial officer of ACWA Power, said: “This financing from ALINMA Bank highlights our strong financial position and the confidence the market has in our vision.”
He added: “Our new headquarters will be more than just a building; it will be a symbol of our commitment to innovation, sustainability, and the Kingdom’s ambitious goals for a cleaner, more prosperous future.”
Chief Corporate Banking Officer of Alinma Bank Jameel Al-Hamdan said his firm was proud to announce its role as the sole financier of the new office.
Al-Hamdan added: “This landmark project aligns with both organizations’ commitment to driving sustainability and innovation in the corporate sector and with the Kingdom’s net-zero strategy.”
The statement added that ACWA Power’s new headquarters in Riyadh reflects its role as a national leader in the energy transition, offering a cutting-edge space designed to centralize operations and foster teamwork and innovation.
It is also set to offer an eco-conscious workspace that supports employees in fulfilling their roles while fostering sustainability.
ACWA Power reported a net profit of SR1.75 billion in 2024, representing an annual increase of 5.74 percent, according to a Tadawul statement released in February.
This growth in profit was driven by increased revenue from operations and maintenance, as well as higher earnings from electricity sales.
The company revealed the rise was attributed to a higher share in net results of equity-accounted investees, gains from capital recycling, and increased net finance income.
The firm’s overall revenue for 2024 was SR6.29 billion, marking a 3.32 percent increase compared to the previous year, according to the statement at the time.
During the same month, ACWA Power signed two agreements with Aramco to accelerate the deployment of renewable energy projects and evaluate the performance of vanadium flow batteries in the Kingdom’s climate.
Source: www.arabnews.com