Saudi Hollandi Bank has agreed to increase Acwa Power’s revolving credit facility by SR600m ($160m).

This brings the facility to SR1.3bn, and the Saudi Arabia-based company’s total revolving credit to SR3.5bn.

The original Islamic finance was agreed with three lenders – the local Arab National Bank, Bank al-Bilad and Saudi Hollandi Bank in 2015. The murabaha facility is available until the third quarter of 2020.

“With our rapid growth has come increased business requirements and this facility will help expand our war chest to offer incremental liquidity in anticipation of further projects,” says Thamer al-Sharhan, managing director of Acwa. “The availability of close to a billion dollars (in SR equivalent) of revolving facilities stands to substantially enhance our liquidity base.”

Acwa stated that the larger facility would strengthen its balance sheet and add liquidity to its capital structure and improve cashflow.

The power developer is working towards financial close on the Hassyan coal independent power project (IPP) in Dubai, as well as the Dairutt IPP in Egypt, IPP5 and a solar project in Jordan.

It signed a project finance deal in June for the Ibri/Sohar IPP in Oman.