Acwa Power has tapped the private credit market to refinance its debt for the Rabigh 3 Independent Water Project ( IWP ).

KKR is the largest lender for the refinancing, and is joined by other investors including Barings, Hong Kong Mortgage Corporation, Clifford Capital, Sumitomo Mitsui Trust Bank, and SBI Shinsei Bank. There is also regional support from Riyadh Bank and Abu Dhabi Commercial Bank.

According to Acwa Power, a capital markets-led approach was used for the refinancing, anchored by the issuance of long-term senior secured project bonds with a high investment-grade credit rating.

The company says the deal has reinforced the bankability of large-scale desalination projects and expanded access to long-term funding for essential infrastructure.

“The new transaction replaces the project’s previous debt facility with a diversified financing structure that broadens the investor base and enhances long-term funding resilience,” says Acwa Power chief executive officer Marco Arcelli. “It also highlights Acwa Power’s ability to structure complex financings that meet the requirements of global institutional investors while aligning with international sustainability standards.”

The deal represents the company’s first alignment with the International Finance Corporation’s Blue Finance Guidelines, a framework for financial institutions to identify, structure, and scale investments supporting sustainable water and ocean use.

Rabigh 3 produces 600,000 cubic metres of desalinated water per day, representing more than half of Saudi Arabia's capacity. The US$700 million plant has been operational since December 2021.

The company says the high credit rating on the deal reflects Rabigh 3 IWP’s strong contractual framework, stable and predictable cash flows, and robust operational performance.

“This transaction marks an important milestone as KKR’s first investment and private credit transaction in the kingdom,” says Julian Barratt-Due, managing director and head of Middle East investing at KKR. “We look forward to expanding our engagement and supporting the kingdom’s transformation.”