The project finance sector in the country has also been active in the last 18 months, according to Mergermarket’s infrastructure focused sister brand Inframation, with big projects set to reach financial close in the country including two Independent Water Projects (IWP), a solar photovoltaic (PV) project and a wind farm. Projects included the USD 646m Shuqaiq 3 project awarded to Acciona and Marubeni in a consortium with local developers, which closed in May; the USD 715m Rabigh 3 project, awarded to ACWA Power and Saudi Brothers, closed in March and the 400MW Dumat al Jandal wind farm, awarded to EDF and Masdar, which closed in June.
The Saudi infrastructure pipeline looks strong, as the government plans to use PPPs and privatisations to achieve its Vision 2030 plan. The National Centre for Privatization (NCP) has a huge range of projects in the power, water, healthcare, road and rail sectors. Live transactions by the NCP currently include a PPP to build 60 schools, a radiology PPP, the King Faisal Specialist Hospital staff accommodation PPP and the King Faisal Specialist Hospital equipment management services PPP. Eight solar PV projects are also currently at the pre-qualified proponents stage.
Chris Haffenden, Project Lead, Project Finance at Acuris commented: “Foreign interest in Saudi projects has grown sharply, as the Kingdom seeks to finance ambitious infrastructure and privatisation programmes. Over 100 entities pre-qualified for the second renewable round. There are over 100 initiatives, across 12 sectors, planned under the Vision 2030 programme. Six deals have already closed for USD 3.5bn. The deal pipeline includes a number of water, waste and desalination projects, with pilots also due in healthcare and education.
The Public Investment Fund (PIF) is developing a USD 500bn giga-project, Neom, a futuristic smart city on the Red Sea Coast the size of Massachusetts. Advisors are already salivating over potential mandates.”
Campbell Steedman, Managing Partner, Middle East at Winston & Strawn LLP, commented: “It has been a bumper year for deal-making and M&A activity in Saudi Arabia, reflecting not only the better economic growth prospects within the kingdom and wider region, but also the rising investor confidence at boardroom level. Looking ahead, with the Saudi Aramco IPO on the horizon and a number of other important M&As in key industries in the pipeline, we expect this to encourage further IPO activity and fuel new investments and greater liquidity for the region as a whole, as companies look to drive more value through consolidation.”
Mergermarket hosted the 2019 edition of its Saudi Arabian M&A and Capital Markets Forum in Dubai on 9th September 2019. The event took place in partnership with Winston & Strawn LLP, EY, Parthenon, DFin, Kroll and was attended by corporate development and M&A teams, private equity professionals, business owners, investment bankers, financial advisors, lawyers and transaction services professionals.
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About the Mergermarket Saudi Arabian M&A and Capital Markets Forum:
Mergermarket's Saudi Arabian M&A and Capital Markets Forum brings together dealmakers and provide an overview of the market through panels and case studies. The long afternoon structure will provide insights and the platform to network with dealmakers in the region.
Visit the website for the full agenda: https://events.mergermarket.com/saudi#agenda
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In M&A, information is the most valuable currency. Mergermarket, an Acuris company, reports on deals 6-24 months before they become public knowledge, giving our subscribers a powerful competitive advantage. With the largest network of dedicated M&A journalists and analysts, Mergermarket offers the most comprehensive M&A intelligence service available today. Our reporters are based in 67 locations across the Americas, Europe, Asia-Pacific, the Middle East and Africa. Visit mergermarket.com .
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© Press Release 2019