IFC getting stake in ACWA Power project

SAUDI ARABIA: Inking a US$240 million Islamic equity bridge loan, the International Finance Corporation (IFC) will receive equity over four years in Uzbekistan’s renewable energy infrastructure – leveraging an Islamic finance Murabahah structure. The A-Loan of up to US$227.75 million and a US$12.25 million trust loan has a funding structure designed to attract private sector investment – as part of Uzbekistan’s ambitious target to generate 40% of its energy from renewables by 2030. The deal is for Saudi Arabia’s ACWA Power project encompassing a one gigawatt solar photovoltaic plant, a 668 megawatt battery energy storage system and roughly 500km of high-voltage transmission lines. Once operational, the projects are expected to reduce greenhouse gas emissions by 1.3 million tons of CO₂ annually, while generating approximately 2,400 gigawatt hours of electricity every year.