Acwa, Saudi Energy secure funding for Rabigh 2 expansion project

By Zawya

By Staff Writer

A consortium comprising ACWA Power Company and Saudi Energy Company has achieved financial close for the Rabigh 2 combined-cycle gas-fired power (CCGT) Independent Power Producer (IPP) expansion project in Makkah, Saudi Arabia.

The 2,313.5-megawatt (MW) combined-cycle gas turbine (CCGT) power plant is located in western Saudi Arabia and is designed to be carbon-capture ready, the companies said in statements to the Saudi stock exchange.

The financing was secured on 1 October for 9.69 billion Saudi Riyal ($2.59 billion), with a tenor of nearly 34 years.

The companies provided limited guarantees covering their respective shares of the reserve liquidity and reserve account required under the financing.

The financing was provided by a consortium of local, regional, and international lenders, including Alinma Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Abu Dhabi Commercial Bank, Boubyan Bank, Commercial Bank of Dubai, China Minsheng Banking Corp. Ltd. – Hong Kong Branch, HSBC Middle East Ltd., Industrial and Commercial Bank of China, Industrial Bank Co. Ltd. – Beijing Branch, National Bank of Greece (Cyprus) Ltd., Standard Chartered Bank (Taiwan) Ltd., and Sumitomo Mitsui Trust Bank Ltd. – London Branch.

The funds will be used to develop, construct, own, and operate the CCGT plant, and financing and building the extension to a 380kV electrical substation.

The project is expected to have a financial impact upon the start of commercial operations at the full plant in the second quarter of 2029.

Each company holds a 40 percent stake in the power project.

Acwa and Saudi Energy signed a 31-year power purchase agreement (PPA) with the Saudi Power Procurement Co. (SPPC) in April 2026 for the project.

(Editing by Anoop Menon)

(anoop.menon@lseg.com)

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