ACWA Power’s maiden 7-year Sukuk issuance achieves lowest pricing amidst 1.8x oversubscription

• Transaction marks the lowest spread by any corporate or bank issuer in Saudi capital markets since 2017
• Sukuk offering in line with ACWA Power’s long-term ambitions and its growing portfolio of assets

Riyadh, KSA, 14 June 2021: ACWA Power, a leading Saudi developer, investor and operator of power generation and desalinated water plants in 13 high-growth markets, announced today that it has successfully raised SAR 2.8 billion, through a senior, unsecured floating Sukuk rate issuance with a 7-year tenor, under the Shariah compliant Mudaraba-Murabaha structure.

The issuance marks the company’s maiden entry into Saudi debt capital markets and saw significant interest from fund managers, government funds and insurance companies accounting for approximately 30% of the issuance and resulting in an oversubscription of 1.8 times over the issue size.

Initial price guidance had been pegged at 100-125 basis points per annum (bps pa) + 6 month SAIBOR. The oversubscription enabled ACWA Power to tighten pricing by 25 bps pa. The final 100 bps pa + SAIBOR pricing is the lowest spread secured in the Saudi capital markets by a corporate or bank issuer since 2017.

The transaction is ACWA Power’s first since the Public Investment Fund (PIF) became a 50% shareholder last year, as part of PIF’s strategy to enable the growth of national champions to become regional and global leaders, whilst also realising sustainable investment returns.

HSBC Saudi Arabia and Samba Capital acted as Joint Lead Managers and Bookrunners for the issuance, with HSBC Issuer Services also acting as Sukuk holders’ Agent and Payment Administrator. Norton Rose Fulbright (NRF)’s London and Riyadh offices acted as Issuer Counsel while the JLMs were advised by Allen & Overy and Khoshaim & Associates.