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ACWA Power breaks new ground with $160mn fund

Sharia compliant fund means Saudi investors can join in rapid expansion.

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Paddy Padmanathan
Paddy Padmanathan

ACWA Power has launched a ‘first of its kind’ fund that gives Saudi investors the opportunity to participate in conventional power and desalination projects.

The company raised SAR 596mn ($159mn) for the Powervest Fund, the first Sharia compliant specialised infrastructure investment vehicle in the Kingdom of Saudi Arabia (KSA), according to a statement.

The 12 year closed ended privately placed fund is managed by SAMBA Capital & Investment Management Company (SAMBA Capital) and domiciled in the KSA under investment regulations of the Kingdom's Capital Market Authority (CMA).

The Fund has attracted a group of sophisticated anchor investors comprising multilaterals, pension funds, sovereign institutions and parastatals into a long-term partnership framework with ACWA Power that enables them to participate in ACWA Power's growth story through the co-investment opportunities offered to the Fund.

The investors in the Fund include Arab Petroleum Investment Corporation (APICORP), Public Investment Fund (PIF), Saudi Aramco Investment Management Company (SAIMCO), The Arab Investment Company (TAIC) and the Islamic Development Bank (IDB).

Paddy Padmanathan, president & CEO of ACWA Power, said: “ACWA Power is proud to have attracted such a strong group of financial and strategic partners of high repute into this captive co-investment fund."

Thamer Al Sharhan, managing director of ACWA Power, said: "The Fund brings to the fore ACWA Power's philosophy of building partnerships and leveraging capital available within the Kingdom towards its aim of delivering best in class power generating and water desalination assets for clients and off-takers while at the same time maximizing the value creation for all stakeholders."

ACWA Power is a developer, investor, co-owner and operator of a portfolio of plants across 10 countries with a capacity to generate 16.1 GW of power and produce 2.5 million m3/day of desalinated water, and which has an investment value in excess of $25bn.

The company’s portfolio includes:

In operation:

• 6,058 MW of power, 2.2 million m³/day of desalinated water and 1,230 tons/hour of steam capacity in Saudi Arabia
• 1,277 MW of power in Jordan
• 427 MW of power and over 136,000 m³/day of desalinated water in Oman
• 60MWp of power using Photo Voltaic (PV) technology in its solar plant in Bulgaria.

Under construction:

• 6,147 MW of power, 55,000 m³/day of desalinated water and 1,015 tons/hour of steam capacity in Saudi Arabia
• 160 MWe Concentrated Solar Power (CSP) plant at Ouarzazate and in Morocco
• 50 MWe CSP plant at Bokpoort in South Africa
• 926 MW CCGT plant at Kirikkale in Turkey
56,825 m³/day of desalinated water in Oman

Under development:

§ 120 MW wind and 350 MWe CSP plants in Morocco
§ 275 MW coal fired power plant in Mozambique
§ 100 MWe CSP plant in South Africa
§ 260 MWp Solar PV plant in UAE

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