Dubai – ACWA Power has achieved a significant milestone in its strategic energy portfolio in Saudi Arabia, with its subsidiary, Coral II Electricity Company, announcing the financial closure of the Rabigh 2 Independent Power Plant expansion project. The massive financing package amounts to approximately 9.69 billion riyals, equivalent to 2.58 billion dollars.
Strategic Expansion Details
This development paves the way for the commencement of actual construction phases and the realization of financial impact by the year 2029. The company clarified that the facility, located in the western region, operates on a combined cycle system with an installed capacity of 2313.5 megawatts. The financing is structured under a contract extending for approximately 34 years, officially secured on October 1, 2026.
Ownership and Guarantees
ACWA Power holds a 40 percent stake in the project. The company provided limited guarantees restricted solely to its share of liquidity reserves and contingency accounts. Additionally, the plant is designed with future readiness to accommodate a carbon capture unit, aligning with broader environmental sustainability goals for the facility.
Banking Consortium
The necessary funding for the development, construction, ownership, and operation of the gas-fired station was provided by a broad banking consortium comprising local, regional, and international lenders. Key participants include Alinma Bank, Al Rajhi Bank, The First National Bank, Saudi British Bank, Abu Dhabi Commercial Bank, Boubayan Bank, Dubai Commercial Bank, and HSBC Middle East.
Global Financial Support
Beyond these entities, prominent Asian and European banking blocks also contributed to the financing structure. This diverse group of financial institutions underscores the strong confidence in the project’s viability and long-term revenue streams within the global energy market context.
Stakeholders and Timeline
Related parties involved in the project include the Saudi Electricity Company and the Saudi British Bank. The financial impact of this closure is expected to reflect on the company’s financial statements starting from the second quarter of 2029, marking a crucial transition from financing to operational execution.
This story was produced in the newsroom from the disclosed sources named above.
