Saudi Arabia’s Acwa Power has increased its Islamic revolving credit financing facilities with a number of local banks to SR2.9bn ($769m).

The facilities will improve Acwa’s financing flexibility and costs, and serve as the developer’s primary stand-by funding.

Acwa has increased its existing revolving credit facility from SR1,775m, which was set up in 2013, to SR2,175m and extended the term by one year to the end of 2019. Local National Commercial Bank and Samba Financial Group each provided an additional SR200m. Banque Saudi Fransi and Saudi British Bank (Sabb) were also among the original financers, but have not increased their participation.

Acwa also entered a new SR709m, five-year revolving facility with local Arab National Bank, Bank Al Bilad and Saudi Hollandi Bank.

Both facilities are structured on a sharia-compliant, commodity, murabaha basis.

“We are grateful to the house banks for expanding our war chest by an excess of a billion [Saudi riyals] at competitive pricing, while setting a benchmark in terms of documentation and sharia-compliant structuring,” says Rajit Nanda, chief investment officer at Acwa. “Acwa Power sought to close this facility in a relatively short time frame to stay ahead of the curve in the wake of the anticipated bottoming out of interest rates, and ensuing liquidity and crowding out pressures.”

According to Acwa, the deal’s good rates and term length will help it secure financing outside the GCC.

Acwa recently reached a financial close on Morocco’s Noor 2 and Noor 3 solar projects, worth about $2bn, and is the sole bidder on Egypt’s 1,500MW Dairutt independent power project (IPP). It also plans to develop 2GW of renewables projects in Egypt with Abu Dhabi’s Masdar.

Acwa was advised by UK legal firm Clifford Chance, while the banks were advised by the local/UK Zeyad S Khoshaim Law Firm/Allen & Overy.