Acwa Power prepares to issue $1bn bond

18 April 2017

Saudi developer will launch bond in last week of April

Saudi Arabia’s Acwa Power is preparing to issue a $1bn bond in the last week of April as part of ambitious plans to raise capital for future investments.

MEED first reported Acwa Power’s intention to issue the $1bn bond in November. The power and water developer has mandated US investment bank Jefferies, the US’ Citigroup, China Construction Bank’s Singapore branch, Japan’s Mizuho and the UK’s Standard Chartered to arrange the bond.

According to sources close to the transaction, the developer is now ready to issue the bond in the last week of April.

In early December, US-based agencies S&P and Moody’s rated the Saudi portfolio of Acwa Power as investment grade, with ratings of BBB- and Baa3 respectively.

In 2016, Acwa Power secured financial close on six major transactions, representing a net power capacity of about 7.4GW.

In September last year, the developer, in partnership with China’s Harbin International, reached financial close for the $3.4bn Hassyan coal-fired independent power project (IPP) in Dubai, which will have a total generation capacity of 4.3GW.

In an exclusive interview with MEED in December, Acwa Power’s chief investment officer (CIO) Rajit Nanda and Chief Financial Officer (CFO) discussed the company’s financial strategy and some of the developer’s future aims and ambitions.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.