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ACWA Power Management and Investments One Ltd (APMI One) has offered to buy back a part of its senior secured bonds (ACWA39) - issued in 2017 and due 2039 - and cancel them in order to reduce its debt service obligations.
The Saudi ACWA Power subsidiary announced the offer on the Irish Stock Exchange plc trading as Euronext Dublin, the Tadawul-listed utility developer said in a bourse filing on Tuesday.
APMI One, a special purpose vehicle (SPV) company incorporated in DIFC Dubai, has offered to purchase bonds up to a value of $400 million of its total $814 million pre-amortisation aggregate, "with existing cash resources of APMI One and ACWA Power Co. and certain of its subsidiaries and affiliates," the statement said.
Number and percentage of the purchased bonds will be determined once the transaction is complete.
Original issuance par value of the minimum denomination size is $200,000 pre-amortisation and $199,600 post-amortisation.
Earlier this year, both Fitch Ratings and Moody's Investors Service downgraded the bonds on the grounds that the portfolio will see a number of changes to the underlying project companies in the near future, which could have a material impact in reducing portfolio diversity and cashflow quality.
APMI One receives its entire revenue through distributions of dividends and fees from eight power and water desalination plants in Saudi Arabia.
The project companies include Rabigh Arabian Water and Electricity Company and Shuqaiq Water and Electricity Co.
(Reporting by Brinda Darasha; editing by Seban Scaria)
