Manama: – IIRA has noted the recent acquisition of stake in International Company for Water & Power Projects (‘ACWA Power’ or ‘the company’) by the Public Investment Fund (PIF) of Kingdom of Saudi Arabia (KSA). PIF, a sovereign wealth fund of KSA, has acquired a stake of 15.2% in ACWA Power. Inclusive of 9.8% shareholding held by Sanabil Direct Investment Company, which is wholly owned by PIF, the effective shareholding of PIF has increased to 24.98%. The transaction will feature infusion of additional capital proceeds, which are to be used to support the company’s growth strategy and investment plan. This development in ACWA Power’s shareholding structure has been noted as a credit positive.
ACWA Power is the largest private power developer in the Kingdom of Saudi Arabia (KSA) and the second largest in the GCC region. The company is vertically integrated, with its wholly-owned subsidiary, First National Operation & Maintenance Company Limited (NOMAC), being the Operational & Maintenance (O&M) contractor for the company’s entire project portfolio. ACWA Power manages a portfolio of 38 project companies generating power and water to the tune of over 27 GWs and 2.8m3/day respectively. The company’s operations span across nine countries including KSA, Oman, Jordan, UAE, Turkey, Vietnam, Morocco, South Africa and Bulgaria.
In February 2018, IIRA had assigned ratings of ‘BBB+/A2’(Triple B Plus / A Two) on the international scale and ‘AA-(sa)/A1(sa)’ (Double A Minus (sa)/ A One (sa)’ on the national scale, to ACWA Power. Outlook on the ratings is ‘Stable’. The Fiduciary Score for ACWA Power was assessed in the range of ’71-75’, reflecting adequate fiduciary standards, wherein rights of various stakeholders are adequately protected.
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For further information on this rating announcement, please contact IIRA at iira@iirating.com.
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