KKR Makes First Saudi Investment With Financing For Key Desalination Plant

The transaction positions KKR as the anchor lender in a long-duration financing solution for Rabigh 3, aligning with the Kingdom’s priorities to strengthen essential infrastructure and enhance water security under Vision 2030. It brings together ACWA Power’s operational expertise in water and energy with KKR’s capabilities in structuring long-dated, investment-grade private credit.

Rabigh 3 is described as a mission-critical desalination plant and a cornerstone of Saudi Arabia’s water infrastructure. Water desalination remains a national priority as the Kingdom modernises utilities to meet the needs of a growing population using scalable and cost-effective technologies.

ACWA Power, which is majority owner of the project, supplies around a quarter of Saudi Arabia’s desalinated water capacity and operates more than 110 assets across 15 countries. The Saudi-listed company has played a central role in the Kingdom’s infrastructure and energy strategy for more than two decades.

KKR anchors financing for Rabigh 3

Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, 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. 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.”

Julian Barratt-Due, Managing Director and Head of Middle East Investing at KKR, said the deal marked “an important milestone” for the firm 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,” he said, adding that the investment reflects KKR’s ambition to scale its presence in Saudi Arabia and deploy capital into essential infrastructure that supports sustainable growth.

The transaction builds on KKR’s long-standing engagement in Saudi Arabia, where it has maintained a local presence since 2014, and follows a period of increased investment activity across the Middle East. The financing is funded by capital accounts advised by KKR.