The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $240 million Islamic Equity Bridge Loan (EBL) financing for ACWA Power to support the development of Uzbekistan’s renewable energy sector.
IFC’s financing will support the construction and operation of two projects, with a cumulative capacity of a 1-gigawatt solar PV plant, a 668-megawatt Battery Energy Storage System (BESS), and approximately 500 kilometres of high-voltage transmission lines. This is expected to mark a major milestone in Uzbekistan’s clean energy transition and reduce GHG emissions by an estimated 1.3 million tons of CO2 annually. Once operational, these renewable projects are expected to generate approximately 2,400 gigawatt hours of electricity annually.
ACWA Power, which is leading the development of this project, was founded in Saudi Arabia and has evolved progressively into a leading power and water company with operations in 13 countries and a growing pipeline of new projects both in Saudi Arabia and globally.
The $240 million financing is structured as an Islamic Finance Murabaha, comprising an A-Loan of up to $227.75 million and a $12.25 million trust loan through IFC’s Managed Co-Lending Portfolio Program. The financing will support ACWA Power’s equity contributions to the project’s development over the next four years. This investment instrument is widely used to help project developers offer competitive tariffs by optimizing equity returns. It will enable ACWA Power to mobilise additional capital and attract private sector investors, contributing to Uzbekistan’s target of achieving 40 percent renewable energy generation by 2030.
