Saudi Arabia’s Public Investment Fund (PIF), the kingdom’s sovereign wealth fund, has taken a 15.2 per cent direct stake in local developer Acwa Power.

The PIF already owns a 9.8 per cent stake in Acwa Power through its subsidiary Sanabil Direct Investments Company, bringing the sovereign wealth fund’s total shareholding in the developer to 25 per cent.

The PIF said in a statement that the investment would “support Acwa’s growth strategy and investment plan”.

Acwa Power is also reportedly planning to launch an initial public offering (IPO) for up to 30 per cent of the company by the end of 2018 to facilitate its expansion throughout the region and internationally.

Earlier this year, the developer was awarded the contract to develop the kingdom’s first major renewable energy project under the National Renewable Energy Programme (NREP). Acwa Power submitted a world record low tariff of 2.3417$c/kWh during the competitive bidding process in October last year.

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