The agreement paves the way for Natixis CIB to finance approximately $2bn over two years for ACWA Power’s future project pipeline, Mepmiddleeast reports.
Saudi Arabia’s ACWA Power, which is a leading developer, investor, and operator of power generation, desalinated water, and green hydrogen plants worldwide, has inked a Memorandum of Understanding (MoU) with Natixis Corporate & Investment Banking (Natixis CIB), which is a subsidiary of Groupe BPCE, the second largest banking group in France, who have stated their intention to collaborate on the advancement of ACWA Power’s projects in the region.
The MoU was signed in Jeddah, Saudi Arabia, by Clive Turton, the Chief Investment Officer of ACWA Power, and Anne-Christine Champion, the Co-Head of Natixis CIB.
The agreement paves the way for the two parties to explore opportunities to develop new projects in the region, including in renewable and clean energy, with an objective for Natixis CIB to finance up to approximately $2bn over two years for ACWA Power’s future project pipeline.
The agreement was signed in the presence of HE Khalid Al Falih, the Saudi minister of Investment; HE Franck Riester, the French Minister of Foreign trade and Economic Attractiveness; Mohammad Abunayyan, the Chairman of ACWA Power; Barbara Riccardi, the Regional Head for Middle East; and Ammar Bukhamsin, the Natixis CIB Country Head of Saudi Arabia.
ACWA Power – Natixis partnership
Since 2005, ACWA Power and Natixis CIB’s relationship has increasingly grown, and Natixis has underwritten several ACWA Power’s high-profile projects such as Sakaka Solar PV IPP, DEWA IV CSP/PV Hybrid IPP, and DEWA V Solar PV IPP.
The developer’s mission is to reliably and responsibly deliver electricity and desalinated water at a low cost, thereby contributing effectively to the sustainable, social, and economic development of communities and countries.
Commenting on the announcement, the President and Chief Executive Officer of ACWA Power, Paddy Padmanathan, said: “Building on a hugely successful longstanding partnership, we are proud and privileged to document the vision to further expand this relationship through this MoU.
“This MoU signed today demonstrates our shared commitment to advancing the renewable energy and decarbonisation ambition in the markets we serve by expanding cost competitive financing solutions through innovative structures and accessing wider pools of liquidity.
Padmanathan added: “We remain committed to building strategic relationships that ensure we cater to the rising demand of power and water within the communities in which we operate without compromising the path towards achieving the objective of becoming net zero by 2050.”
The Co-Head of Natixis CIB, Anne-Christine Champion, said: “We are delighted to have signed an MoU with ACWA Power, which cements the close relationship of trust and cooperation that we have forged over the past ten years.
“Natixis CIB’s area of expertise are highly complementary to those of ACWA Power, and we greatly look forward to continuing to accompany the firm as it leads the way in the development of renewable energy, water desalination and green hydrogen projects throughout the region.”