IFC Provides $240M Islamic Equity Bridge Loan for ACWA Power's Clean Energy Projects in Uzbekistan

The International Finance Corporation (IFC) announced a $240 million Islamic Equity Bridge Loan (EBL) financing for Saudi-based ACWA Power today, designed to support Uzbekistan’s renewable energy infrastructure. The financing was unveiled on the sidelines of the 8th Future Investment Institute conference in Riyadh, Saudi Arabia.

IFC’s financing package will facilitate the construction and operation of two significant projects in Uzbekistan: a 1-gigawatt solar photovoltaic (PV) plant and a 668-megawatt Battery Energy Storage System (BESS), alongside approximately 500 kilometers of high-voltage transmission lines. The projects are expected to drive Uzbekistan’s clean energy transition, with an anticipated reduction in greenhouse gas emissions by approximately 1.3 million tons of CO₂ per year. Once operational, these installations are projected to generate around 2,400 gigawatt-hours of electricity annually.

ACWA Power, a key player in sustainable energy with operations in 13 countries, leads the development. Founded in Saudi Arabia, the company has established a prominent role globally as the world’s largest private desalination firm, an advocate for energy transition, and an early adopter of green hydrogen solutions.

“IFC’s strategic partnership with ACWA Power signifies the confidence that multilateral finance institutions place in our credit standing and that of Saudi corporations,” stated Abdulhameed Al Muhaidib, CFO of ACWA Power. He added that the transaction bolsters ACWA Power’s renewable energy initiatives in frontier markets like Uzbekistan.

The $240 million investment, structured as an Islamic Finance Murabaha, consists of an A-Loan of up to $227.75 million and a $12.25 million trust loan via IFC’s Managed Co-Lending Portfolio Program. This structure supports ACWA Power’s equity contributions, optimizes returns, and attracts private sector investment, aligning with Uzbekistan’s target of 40% renewable energy by 2030.

Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources, commented, “This project reflects IFC’s dedication to combating climate change, accelerating renewable transitions in emerging markets, and supporting public-private partnerships across Saudi Arabia and beyond.”

This partnership further emphasizes gender inclusivity, aiming to increase female representation in ACWA Power’s workforce. IFC, which has collaborated with ACWA Power since 2011, views this investment as a continuation of their shared commitment to sustainable energy and innovative financing in emerging markets.