- Acwa Power has raised $746 million through a 7-year Sukuk or Islamic bond issuance.
- The funds will enable the company to expand its services.
- Acwa Power has a portfolio of 64 assets with a total capacity of 42GW across three continents.
Saudi Arabia’s Acwa Power has raised 2.8 billion Saudi riyals ($746 million) through a 7-year Sukuk or Islamic bond issuance. The funds will enable the company to expand its services and grow.
“The success of the issuance is proof of the wider market’s faith in KSA’s bond market and Acwa Power’s strong credit fundamentals, which have attracted a diverse pool of sophisticated investors,” Paddy Padmanathan, president and chief executive of Acwa Power, said.
Companies across the middle east have taken advantage of the low rates to raise debt financing as the region looks to recover from the impacts of the Covid-19 pandemic and last year’s oil price plunge.
Acwa Power operates in 13 countries in the Middle East, Africa and South-East Asia. It has a portfolio of 64 assets with a total investment of $66bn, producing 42GW of power and 6.4 million cubic metres per day of desalinated water.
Earlier this year, Acwa Power secured financing for a $1bn power project in Uzbekistan.
The company also recently signed an agreement with Dubai-based Neutral Fuels to supply net-zero biofuel to power the kingdom’s Red Sea tourism project on the coast.