ACWA Power’s Sukuk programme achieves record competitive pricing in Saudi Arabia with 2.2.x oversubscription

ACWA Power’s Sukuk programme achieves record competitive pricing in Saudi Arabia with 2.2.x oversubscription

- Phase 2 of ACWA Power’s SAR 5 billion programme to support its asset growth as well as Saudi Arabia’s domestic Debt Capital Market depth

Riyadh, KSA: ACWA Power Company, a publicly listed company on the Saudi Arabian Tadawul stock exchange (ACWA Power: 2082) and a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, announced today that it has successfully raised SAR 1.8 billion, through a senior, unsecured Sukuk floating rate issuance with a 7-year tenor along with a call option on the fifth year anniversary of the issue date.

The issue was structured on a Shariah compliant Mudaraba-Murabaha basis. The transaction marks the company’s second issuance under the SAR 5bn Sukuk program, following the SAR 2.8 bn phase 1 issue in June 2021. The proceeds will be used for general corporate funding purposes besides phase 2 of ACWA Power’s investment in Jazan IGCC brownfield acquisition.

The pricing guidance (Investor Protection Trust) released on 10th January was tightened by 5-10 basis points per annum for the final pricing on 18th January of 3m SAIBOR + 95bps p.a with a step up to 3m SAIBOR + 105bps p.a on the 5th year anniversary of the Issue