Saudi Arabia’s ACWA Power International proposes to raise as much as 3.75 billion riyals ($1 billion) from an Islamic bond sale, according to people close with the topic.
The company, which develops and operates power and water plants across the Middle East, Africa and Asia, is in talks with local banks about the potential deal that would be denominated in Saudi riyals, the people said asking not to be identified as the information is private. The funds would be used for general corporate purposes, they said.
Saudi Arabia’s sovereign wealth fund was set to increase its stake in ACWA to 45 percent by the end of March, the power company’s chief executive officer Paddy Padmanathan said in February 2020. That deal is expected to be a forebear to the company’s initial public offering on the Saudi stock exchange.