MUFG has supported the $320m financing of the 55 MIGD Shuaibah water desalination plant in Saudi Arabia.
MUFG acted as the Mandated Lead Arranger, Hedge Provider, Intercreditor Agent and Offshore Account Bank on behalf of ACWA Power.
Once completed, Shuaibah will have a capacity of 250,000m3 of potable water per day, utilising reverse osmosis technology.
The Shuaibah plant is key to supporting Saudi Arabia's efforts to bridge the long term supply needs across the country and minimise future demand-supply gaps. Shuaibah will sell 100 per cent of the desalinated water under a long-term Water Purchase Agreement, to Water & Electricity Company.
The plant is located approximately 120km south of Jeddah on the west coast.
Financing comprised a Floating Rate Term Loan Facility, a Standby Debt Facility and a Term Loan Fixed Rate Facility.
Carol Gould, Head of Power and Renewables, said:
"ACWA Power is one of the leading developers of core power and water desalination infrastructure across the region and MUFG is delighted to have been able to support the financing of the Shuaibah project, which will help meet the long term demand for potable water in Saudi Arabia. We look forward to playing a future role in similar projects in coming years."
MUFG is a leading provider of project finance across EMEA and has supported a varied range of transactions, including financing the Sweihan solar Photovoltaic project in Abu Dhabi this year, which is the largest Photovoltaic project globally.