The International Finance Corporation (IFC) announced a $240mn Islamic Equity Bridge Loan (EBL) to ACWA Power, supporting Uzbekistan's renewable energy ambitions. This funding announcement, made at the 8th Future Investment Initiative conference in Riyadh, Saudi Arabia, stresses the growing partnership to advance sustainable energy infrastructure in emerging markets.
The IFC’s financing will drive two projects in Uzbekistan, including a 1-gigawatt solar photovoltaic (PV) plant and a 668-megawatt Battery Energy Storage System (BESS). The infrastructure also incorporates approximately 500 kilometers of high-voltage transmission lines, forming a comprehensive clean energy solution expected to reduce greenhouse gas (GHG) emissions by 1.3mn tons of CO₂ annually and generate roughly 2,400 gigawatt-hours of electricity.
Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, expressed that the transaction marks a milestone for both ACWA Power’s energy transition initiatives and Saudi Arabian corporates, stating,
"This collaboration exemplifies our commitment to sustainable energy solutions, setting a new precedent for cross-border ACWA Power recourse funding and addressing critical energy demands with environmental sustainability at its core."
Structured as an Islamic Finance Murabaha, IFC's financing comprises a $227.75mn A-Loan and a $12.25mn trust loan under the Managed Co-Lending Portfolio Program, designed to optimize tariffs and encourage private investment. This structure will enable ACWA Power to further mobilize capital, boosting Uzbekistan's renewable energy targets, which aim to achieve 40% of national power generation from renewable sources by 2030.
IFC's Regional Head of Industry for Infrastructure, Laura Vecvagare, emphasized that "This initiative illustrates IFC’s commitment to combating climate change and fostering sustainable energy in emerging markets, including Uzbekistan, where renewable energy is a cornerstone of long-term development."
Beyond environmental goals, this project also aims to increase female representation within ACWA Power, promoting a gender-inclusive workplace in Uzbekistan’s evolving energy sector.
The energy intensity in Uzbekistan remains three times the average for Europe and Central Asia, prompting efforts to decarbonize the economy and modernize infrastructure. The project supports Uzbekistan’s government targets of reducing energy intensity by 30% and GHG emissions by 35% by 2030. Integrating solar PV and BESS technology, it will enhance Uzbekistan’s grid stability, reduce fossil fuel reliance, and meet the growing energy demands sustainably.
The IFC-ACWA partnership builds on their longstanding collaboration, dating back to 2011, with a shared commitment to sustainable development.
The International Finance Corporation (IFC), a member of the World Bank Group, stands as the largest global development institution focused on the private sector in emerging markets, working across over 100 countries to foster sustainable economic development. In fiscal year 2024, IFC invested a record $56bn to bolster private sector solutions and catalyze economic growth worldwide.
ACWA Power, listed on the Saudi Tadawul exchange, is the world’s largest private desalination company and a pioneer in renewable energy, including green hydrogen. With operations spanning 13 countries, ACWA Power manages a portfolio of 90 projects worth approximately $94.3bn, delivering 65.6 GW of power and 8mn cubic meters of desalinated water daily.
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