Saudi fund raises ownership stake in ACWA power to 50% -statement

SectorFinancial Markets
CountrySaudi Arabia

CAIRO/DUBAI – The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, said on Thursday it has increased its stake in ACWA Power to 50% from 33.6% as part of a move to support the renewable energy sector in Saudi Arabia.ACWA Power is planning an initial public offering and leads a consortium that will build and operate renewable power-based utilities at Saudi Arabia’s flagship Red Sea tourism project.  ”We believe that ACWA Power will play a significant role in both driving and diversifying economic growth in the future – while also providing enduring commercial return for the people of the kingdom,” the fund said in a statement.In June, ACWA Power’s chief executive had told Reuters the company expects to achieve its target of more than $10 billion in new investments this year, as the coronavirus pandemic had “minimal impact” on its projects.The company, which had delayed its IPO plans two years ago, is still committed to a planned IPO, although more...