Saudi Arabia’s Acwa Power set to raise $1bn in sukuk sale

SourceArabian Business
SectorFinancial Markets
CountrySaudi Arabia

Sukuk to be used to help fund Acwa's share of an $8bn acquisition of gasification and power assets at Jazan Saudi Arabia’s Acwa Power International, half-owned by the kingdom’s sovereign wealth fund, is planning to raise about $1 billion by selling Islamic bonds early next year, according to people familiar with the matter. The company, one of the largest developers of power plants in the Middle East, has appointed the Saudi unit of HSBC Holdings Plc and Samba Capital to advise on the issuance, the people said, asking not to be identified as the information is private. The sukuk, as Islamic bonds are known, will be used to help fund Acwa’s share of an $8bn acquisition of gasification and power assets at Jazan on Saudi Arabia’s west coast. The sukuk will be followed by Acwa’s initial public offering on the Riyadh stock exchange, which could raise about $1bn and value the company at about $8bn, the people said. Company in talks with local banks about potential deal that would be denominated in Saudi riyals Acwa, HSBC and Samba didn’t immediately respond to requests for comment. Saudi Arabia’s Public Investment Fund agreed last week to acquire a 50 percent stake in Acwa. That deal was part more...