ACWA Power Completes Landmark Refinancing of Rabigh 3 Independent Water Project
ACWA Power, the world’s largest private desalination company and a leader in the energy transition, has successfully completed the refinancing of the Rabigh 3 Independent Water Project (IWP)—a landmark transaction that strengthens Saudi Arabia’s infrastructure financing landscape and highlights robust international investor appetite for high-quality, investment-grade assets in the Kingdom.
The refinancing marks a significant milestone for Saudi capital markets, leveraging an innovative, capital-markets-led structure anchored by a long-term senior secured project bond.
The bond achieved a high investment-grade credit rating from a leading global rating agency, reflecting the project’s strong contractual framework, predictable cash flows, operational resilience, and ACWA Power’s proven expertise as a sponsor, developer, and operator of critical infrastructure.
According to Marco Arcelli, CEO of ACWA Power, the transaction reinforces the bankability of large-scale desalination projects while expanding access to long-term funding.
He noted that blending capital markets instruments with strong project fundamentals enables greater participation from global institutional investors, supporting the company’s continued leadership in desalination—currently providing more than half of Saudi Arabia’s desalinated water capacity.
The new refinancing replaces the project’s previous debt facility with a more diversified and resilient funding structure, broadening the investor base and aligning the project with international sustainability standards.
It also underscores ACWA Power’s ability to execute complex financings that meet global investor expectations.
Abdulhameed Al Muhaidib, Chief Financial Officer, highlighted the strategic importance of Rabigh 3 to the Kingdom’s water security, adding that the deal reflects ACWA Power’s commitment to responsible finance and environmental stewardship.
Notably, the transaction includes the company’s first-ever blue bond, attracting new international investors to its Saudi portfolio.
Rabigh 3 is a 600,000 cubic metres per day seawater reverse osmosis desalination plant serving the Makkah region and has consistently delivered strong operational performance, with availability exceeding 99%.
The refinancing was anchored by KKR as the largest lender, alongside global institutions including Barings, Hong Kong Mortgage Corporation, Clifford Capital, Sumitomo Mitsui Trust Bank, and SBI Shinsei Bank, with regional backing from Riyadh Bank and Abu Dhabi Commercial Bank.
Aligned with the IFC Blue Finance Guidelines, the refinancing further supports Saudi Arabia’s Vision 2030 objectives, reinforcing sustainable infrastructure development while safeguarding long-term national water security.
