Riyadh – Mubasher: ACWA Power has priced a bond issue at a value of $814 million, with a maturity period of 22 years. This bond will be issued by ACWA Power Management and Investments One Ltd, a subsidiary of ACWA Power.
ACWA Power has set the final pricing for its debut bond to raise $814 million. The bond will be issued in US dollars and will be listed on the Global Exchange Market of the Irish Stock Exchange (ISE). The bond is secured by cash flows and other securities from eight operating power generation and/or water desalination plants located in Saudi Arabia, according to statement on Tuesday.
The company noted that this issue was designed to be in line with ACWA Power’s growth strategy, through diversifying its financing sources, increasing capital maturity periods to be convenient with the maturity profile of its asset base, repaying certain existing facilities, and enhancing its funding flexibility.
Global markets’ confidence is a reflection to the transformation seen in the Kingdom over the past few years and the precise goals in the framework of Vision 2030, said Mohammad Abunayyan, ACWA Power's chairman.
Moody’s and Standard and Poor’s (S&P) are expected to rate the issue at "Baa3" and "BBB-", with a “Stable” outlook, respectively.
Moreover, Jefferies Group was appointed as the structuring adviser for the issue, while Citibank and Jefferies will be acting as joint global coordinators along with China Construction Bank Corporation (CCB) Singapore, Mizuho, NCB Capital (NCBC), and Standard Chartered Bank as joint bookrunners, and Mitsubishi UFJ Financial Group (MUFG) and SMBC Nikko as co-managers, the statement added.
