Saudi Arabia's Acwa Power has completed financing for the $2.5bn Rabigh independent power project (IPP) and made the first drawdown of the facility.
The deal was completed and signed on 21 July, followed by the first drawdown of $500m.
The Rabigh financing includes a $1.9bn debt tranche that is committed on a tenor of 20 years.
It is the first time that a project finance deal with a long tenor has been completed in the region in 2009. Most other regional project finance deals are currently looking for financing of eight to 10 years.
The only other project in the region currently seeking long-term finance is the Shuweihat 2 power and water project in Abu Dhabi. However, banks are still negotiating the pricing of the deal proposed by the project's sponsor, the Abu Dhabi Water and Electricity Authority (Adwea).
The team developing the Rabigh plant, led by Acwa and Korea Electric Power Corporation (Kepco), signed a power-purchase agreement with Saudi Electricity Company on 11 July (MEED 13:7:09).
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