Riyadh – Mubasher: US private equity company KKR has entered into a strategic financing transaction with ACWA Power in a transaction that marks the first investment for KKR in Saudi Arabia, according to a press release.
The collaboration underscores KKR’s growing momentum across the Middle East and its long-term commitment to partnering with national champions to support critical infrastructure across the Kingdom in support of Vision 2030.
Under the transaction, KKR will serve as the anchor lender in a long-duration financing solution for the Rabigh 3 desalination facility, a mission-critical asset providing a substantial share of water to the Makkah region.
Moreover, the transaction brings together ACWA Power’s industry-leading operational expertise with the US firm’s global capabilities in structuring and delivering long-dated, investment-grade private credit solutions.
Rabigh 3 project is majority-owned by ACWA Power, providing a quarter of Saudi Arabia’s desalinated water capacity and operating more than 110 assets across 15 countries.
ACWA Power, the Saudi-listed company, has been a central partner to the Kingdom’s infrastructure and energy strategy for more than two decades.
Chief Financial Officer of ACWA Power, Abdulhameed Al Muhaidib, said: “Rabigh 3 IWP is a cornerstone asset for water security in the Kingdom, and the strong participation from international investors reflects its quality, reliability, and long-term value.”
Al Muhaidib added: “This transaction demonstrates ACWA Power’s commitment to responsible finance, sustainable water infrastructure, and long-term environmental stewardship. We’re very proud to issue our first ever blue bond that attracts new international investors to our Saudi fleet.”
It is worth noting that the transaction is being funded by capital accounts advised by KKR.
Meanwhile, KKR’s Managing Director and Head of Middle East Investing, Julian Barratt-Due, stated: “This transaction marks an important milestone as KKR’s first investment and private credit transaction in the Kingdom. ACWA Power is a best-in-class operator and a respected national champion, and we are proud to support one of Saudi Arabia’s most critical utility assets.”
Barratt-Due added: “Our investment reflects KKR’s broader ambition to scale our presence across the Kingdom, deepen partnerships with leading corporate, and deploy capital behind essential infrastructure that contributes to long-term, sustainable growth. We look forward to expanding our engagement and supporting the Kingdom’s transformation.”
The investment follows a year of significant deployment for KKR across the Middle East, including investments in Gulf Data Hub, ADNOC Gas Pipelines, ART Fertility Clinics and Premialab. Momentum has been supported by the continued expansion of KKR’s regional footprint, including the relocation of its Saudi office to King Abdullah Financial District (KAFD) and the opening of a new office in Abu Dhabi, complementing the firm’s long-standing presence in Dubai.
Earlier in December, ACWA Power joined forces with the African Development Bank (AfDB) to expand financing of power generation and water desalination projects in Africa.
