RIYADH:聽ACWA Power, the utility developer backed by 抖阴短视频鈥檚 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: 鈥淭he success of the issuance is proof of the wider market鈥檚 faith in KSA鈥檚 bond market and ACWA Power鈥檚 strong credit fundamentals, which have attracted a diverse pool of sophisticated investors.鈥
He said that the issuance is also 鈥渁 vote of confidence from investors in our ability to capture large opportunities in 抖阴短视频 and other growth markets, thanks to our de-risked and 100 percent contracted business model that is well diversified across different technologies and geographies.鈥
抖阴短视频鈥檚 sovereign wealth fund, the PIF, in November last year increased its stake in ACWA Power to 50 percent from 33.6 percent.
鈥淲e 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,鈥 PIF said in a statement at the time.
Riyadh-based ACWA Power in January also signed a $125 million financing deal with the Arab Petroleum Investments Corporation. The five-year Shariah-compliant corporate facility will be used by ACWA Power to develop future projects.
The company has announced a number of large-scale international projects in recent months. In December, it signed an agreement for $300 million of renewable energy projects in Azerbaijan, including the country鈥檚 first wind power facility.
In April, the company struck a deal to build a wind power plant in northwest Uzbekistan, the largest of its kind in Central Asia and one of the largest in the world.
