ACWA Power to issue $1 bln bond in April, says chairman

Riyadh-based ACWA Power International is planning a $1 billion bond issue next month, which will make it Saudi Arabia’s first private company to tap the international debt market, chairman Mohammad Abunayyan told Al-Arabiya TV.

ACWA Power initially announced its intention to raise debt in November, following Saudi Arabia’s $17.5 billion debt sale the previous month.

Jefferies, Citi, CCB Singapore, Mizuho and Standard Chartered were mandated to arrange the bond.

However, the Saudi water and power plant developer postponed the bond sale to early 2017, citing “timing constraints and requests from investors for more time to evaluate the proposed offering,” according to a statement issued by the lead arrangers in December. 

Meanwhile, Abunayyan maintained a bullish outlook for sustainable, low-cost power projects in the kingdom, adding that these projects will not be funded from the state’s budget.