ACWA Power raises $479.7m under the Sukuk programme

It is the second phase of the SAR5b programme.

Saudi Arabia-based ACWA Power has raised around $479.7m  (SAR1.8b) in funding which will be used for general corporate funding purposes along with the second phase of its investment in Jazan integrated gasification combined cycle brownfield acquisition.

In a statement, ACWA Power said the fund was secured through a senior, unsecured Sukuk floating rate issuance with a seven-year tenor with a call option on the 5th issue date anniversary.

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The transaction, which had a healthy order book of around $1.1b (SAR4.02b) or 2.2 times oversubscription, was structured on a Shariah complaint Mudaraba-Murabaha basis, and is the second issuance under the around $1.3b (SAR5b) Sukuk programme. The first phase involving around $746m (SAR2.8b) was raised in June 2021.

ACWA Power said the issuance attracted 22 banks, government funds, asset managers, and insurance firms. Non-bank investors comprised 32.2% of the order book.

$1 = SAR3.75