HSBC Saudi Arabia acts as financial advisor to SWCC
JEDDAH - HSBC Saudi Arabia is acting as financial advisor to the Saline Water Conversion Corporation on its first private sector financing since being established to structure financing solutions for the development of new, more efficient desalination projects in the Kingdom of Saudi Arabia. The corporation is considered a world leader in water desalination and a key contributor to research activities in the desalination sector both locally and internationally.
Under the first phase of this initiative, the Saline Water Conversion Corporation has signed financing agreements for a corporate bridge facility of SAR 1.6 billion on 1st February 2020. This bridge facility aims to meet short term funding requirements for the development of Jubail phase 1 and Alkhobar phase 2 desalination plants based on Reverse Osmosis technology. These new, more efficient and environmentally friendly investments increase desalinated water production capacity, together with cost savings through increased fuel efficiencies and reduction in overall operating costs for the country, by replacing the existing thermal desalination technology. This milestone reflects the progress made by the Saline Water Conversion Corporation in alignment with Vision 2030 to achieve budgetary balance and increase alternative financing methods for the sector.
HSBC Saudi Arabia provided advisory support on key commercial structuring elements necessary to successfully close the first phase of the transaction and continues to work on the next phase. The Saline Water Conversion Corporation expressed that besides having a competitive proposal during the bid process, the decision to appoint HSBC Saudi Arabia was based on HSBC Saudi Arabia’s expertise and knowledge of the local market.
