PIF-backed ACWA Power raises $750m from maiden sukuk
- Date: 16-Jun-2021
- Source: Arab News
- Sector:Oil & Gas
- Country:Saudi Arabia
PIF-backed ACWA Power raises $750m from maiden sukuk
RIYADH: ACWA Power, the utility developer backed by Saudi Arabia's Public Investment Fund (PIF), on Tuesday announced it had raised SR2.8 billion ($750 million) from its first sukuk issuance. The sukuk will have a seven-year tenor and was 1.8 times oversubscribed, the company said in a statement. Fund managers, government funds and insurance companies accounted for about 30 percent of investors. Paddy Padmanathan, president and CEO of ACWA Power, said: "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.“ He said that the issuance is also "a vote of confidence from investors in our ability to capture large opportunities in Saudi Arabia and other growth markets, thanks to our de-risked and 100 percent contracted business model that is well diversified across different technologies and geographies.“ Saudi Arabia's sovereign wealth fund, the PIF, in November last year increased its stake in ACWA Power to 50 percent from 33.6 percent. "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