Commodity Murabaha Transactions advised by Clifford Chance
International law firm Clifford Chance advised International Company for Water & Power Projects (ACWA Power) on two syndicated commodity murabaha-based transactions to add another SAR1.109 billion (US$295 million) to its revolving shari’a compliant working capital facilities.
ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants with currently presence in 12 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power’s portfolio, with an investment value in excess of US$26 billion, can generate 16.9 GW of power and produce 2.5 million m3 /day of desalinated water to be delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models.
The first transaction involved upsizing its existing five-year revolver facility (signed in 2013) by SAR400 million, taking it to SAR2.175 billion (US$580 million), and extending its tenor by a year. The banks in this transaction included the National Commercial Bank, Samba Financial Group, Banque Saudi Fransi and the Saudi British Bank.
The second transaction was a fresh five-year revolving facility for SAR709 million (US$189 million) involving Bank Al-Bilad, Saudi Hollandi Bank and Arab National Bank.
