Riyadh – Saudi ACWA Power confirmed that it targets effective participation in achieving Saudi Vision 2030 through activating the role of the private sector at a time the Kingdom is heading toward increasing the volume of privatization programs and amid confirmation that the role of the private sector in this regard will be very pivotal.

In this matter, ACWA Power announced it has priced a bond issue at a value of $814 million, with a maturity period of 22 years, which confirms the company’s powerful financial and strategic position and which is in turn a natural reflection of Saudi Arabia’s economic and financial strength.

In a press conference held in Riyadh on Monday, the company revealed that the bond will be issued by ACWA Power Management and Investments One Ltd, a subsidiary of ACWA Power in Dubai International Financial Center.

The Saudi company 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.

ACWA Power explained during a press conference 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.

In this matter, “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 ACWA Power’s Chairman Mohammad Abunayyan.

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), Standard Chartered Bank as joint book-runners, Mitsubishi UFJ Financial Group (MUFG) and SMBC Nikko as co-managers.