IFC Secures $240M Islamic Equity Bridge Loan for ACWA Power’s Renewable Energy Projects in Uzbekistan

Founded in Saudi Arabia, ACWA Power has grown into a world leader in power and water projects, with a significant portfolio in renewable energy and desalination.

Today, the International Finance Corporation (IFC) announced a significant $240 million Islamic Equity Bridge Loan (EBL) for ACWA Power, advancing Uzbekistan’s renewable energy infrastructure. Revealed at the 8th Future Investment Initiative conference in Riyadh, the financing package aims to support the construction and operation of two transformative projects in Uzbekistan. These will include a 1-gigawatt solar photovoltaic (PV) plant, a 668-megawatt Battery Energy Storage System (BESS), and roughly 500 kilometres of high-voltage transmission lines. Once operational, the projects are expected to reduce greenhouse gas emissions by 1.3 million tons of CO₂ annually, while generating approximately 2,400 gigawatt hours of electricity every year.

Founded in Saudi Arabia, ACWA Power has grown into a world leader in power and water projects, with a significant portfolio in renewable energy and desalination. Through this partnership with IFC, ACWA Power will use the funds to contribute equity over four years, leveraging an Islamic Finance Murabaha structure. The financing comprises an A-Loan of up to $227.75 million and an additional $12.25 million trust loan from IFC’s Managed Co-Lending Portfolio Program (MCPP). This funding structure is designed to optimize project economics by attracting private sector investment, a critical component of Uzbekistan’s ambitious target to generate 40 percent of its energy from renewables by 2030.

ACWA Power’s CFO, Abdulhameed Al Muhaidib, expressed optimism over the partnership’s potential to advance sustainable energy in Uzbekistan, highlighting the trust multilateral finance institutions like IFC have placed in Saudi corporate entities. “This strategic financing partnership with IFC underscores our commitment to sustainable energy leadership. It supports our mission to expand renewable energy projects in high-demand markets like Uzbekistan, helping us pioneer a model for cross-border, green funding,” he stated.

Alongside environmental sustainability, the project emphasizes gender inclusivity. ACWA Power will implement initiatives to boost women’s representation within its workforce, fostering a supportive, inclusive workplace culture within the energy sector. The project will also help catalyze South-South investment, as underscored by Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources. “This project marks our ongoing commitment to tackling climate change, fostering the clean energy transition, and expanding our regional support for private and public Saudi entities. Working closely with ACWA Power, we aim to bring South-South investments to Uzbekistan’s renewable energy sector, driving sustainable growth,” she said.

This collaboration with ACWA Power, which has worked with IFC since 2011, represents a milestone in expanding sustainable energy solutions across emerging markets. Through IFC’s innovative financial structures, this investment will provide Uzbekistan with a stronger foundation for its renewable energy sector, reinforcing both nations’ commitments to climate action and economic resilience.