ACWA Power, a Saudi developer, investor and operator of power generation and desalinated water plants, has raised SAR 2.8 billion ($745 million), through a senior, unsecured floating sukuk rate issuance.
The issuance marks the company’s maiden entry into Saudi debt capital markets, according to ACWA. Fund managers, government funds and insurance companies accounted for some 30 percent of the issuance, resulting in an oversubscription of 1.8 times more than the issue size.
The transaction is ACWA Power’s first since the Public Investment Fund became a 50 percent shareholder in 2020.
“This is a significant transaction for both ACWA Power and the Kingdom’s capital market in terms of timing, pricing, and from an investor diversification perspective,” said Kashif Rana, CFO of ACWA Power. “The success of this issuance, underpinned by favourable cost of funding and terms, marks a new phase in diversifying our company’s funding sources to cater for future
