Acwa Power planning to raise $1bn through Islamic bonds

24 Nov 2020
Acwa Power planning to raise $1bn through Islamic bonds

Saudi Arabia’s Acwa Power is planning to raise $1bn through selling Islamic bonds in early 2021.

 Saudi Arabia’s Acwa Power is planning to raise $1bn through selling Islamic bonds in early 2021, according to a report in Bloomberg.

According to Bloomberg, Acwa Power has appointed the Saudi unit of HSBC and the local Samba Capital to advise on the issuance of the Islamic bonds.

The Islamic bonds will be used to help fund Acwa Power’s acquisition of an $8bn gasification and power project in Jizan, Saudi Arabia.

Energy & Utilities recently reported that Saudi Arabia’s state sovereign wealth vehicle Public Investment Fund (PIF) had increased its ownership stake in Acwa Power to 50 per cent.

Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) increased its ownership stake in local developer Acwa Power from 33.6 per cent to 50 per cent.

The investment is part of PIF’s plans to diversify its holdings into renewable energy.

Acwa Power is the largest developer, investor and operator of power generation and desalination plants in the Middle East. The group 58 assets in operation, construction or advanced development across 12 countries.

By the end of 2019, the value of the group’s portfolio was valued at $47.9bn, which included stakes in power generation projects with a capacity of 30.9GW and desalination projects which can produce a total of 5.3 million cubic metres a day.

Approximately 74 per cent of Acwa Power’s power generation holdings are in clean-energy projects.

 A consortium led by Acwa Power was recently awarded a public-private partnership (PPP) contract by the Red Sea Tourism Development Company (TRSDC) to develop the utilities and related infrastructure for the Red Sea Tourism project in the Saudi Arabia.

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