The International Finance Corporation (IFC) has granted a $240 million Islamic Equity Bridge Loan (EBL) to ACWA Power, a leading Saudi-based renewable energy developer, to advance major clean energy projects in Uzbekistan.
The financing was announced at the 8th Future Investment Initiative in Riyadh, and it supports Uzbekistan’s clean energy ambitions by bolstering renewable infrastructure.
The loan package will fund two critical components in Uzbekistan: a 1-gigawatt solar photovoltaic (PV) power plant and a 668-megawatt Battery Energy Storage System (BESS). In addition, the project includes approximately 500 kilometers of new high-voltage transmission lines, essential for integrating these renewable sources into the national grid.
Once completed, the solar and storage facilities are expected to deliver around 2,400 gigawatt-hours of electricity annually, helping Uzbekistan reduce greenhouse gas emissions by an estimated 1.3 million tons of CO₂ per year.
“IFC’s strategic partnership with ACWA Power reflects the confidence that global finance institutions place in our capabilities and in Saudi-led enterprises. This transaction bolsters our renewable energy initiatives in emerging markets, especially in regions such as Uzbekistan,” said Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power.
The IFC funding is structured as an Islamic Finance Murabaha agreement, 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 approach optimises returns on ACWA Power’s equity contributions, facilitates private sector involvement, and aligns with Uzbekistan’s national goal to generate 40% of its energy from renewable sources by 2030.
Laura Vecvagare, IFC’s Regional Head of Industry for Infrastructure and Natural Resources, highlighted the broader implications of the deal: “This project exemplifies IFC’s commitment to combat climate change, accelerate renewables in emerging markets, and foster effective public-private partnerships in Saudi Arabia and beyond.”
ACWA Power, active across 13 countries, has positioned itself as a major player in sustainable energy and desalination.
As part of its ongoing partnership with IFC, which began in 2011, this venture aims not only to enhance sustainable energy but also to promote gender diversity within its workforce, reflecting a shared commitment to inclusivity in the energy sector.
The Uzbekistan projects are part of ACWA Power’s broader mission to lead in green hydrogen and renewable technologies globally, as well as in Saudi Arabia’s domestic energy transition.
