On July 5, the Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, has built a 24.98% direct and indirect equity interest in ACWA Power.
The parties announced on Wednesday that PIF, which already had a 9.78% ownership through a wholly-owned unit, has bought a 15.2% direct stake in ACWA Power for an undisclosed sum. PIF said that it recognises “exciting growth potential” for the Saudi firm and considers this transaction to be a strategic long-term investment for the fund.
The investment was made through a capital hike, the proceeds of which will support ACWA Power’s growth strategy and investment plan, the announcement says.
ACWA Power develops, owns and operates power generation and water desalination plants. It has a total of 40 facilities in operation and under construction, as well as seven projects in advanced development.
The company’s power generating portfolio includes assets such as the 700-MW concentrated solar power (CSP) fourth phase of the Mohammed Bin Rashid Al Maktoum Solar Park in Dubai, which was awarded to an ACWA Power-led consortium, the just recently inaugurated 120-MW Khalladi wind farm in Morocco and the 300-MW Sakaka photovoltaic (PV) project in Saudi Arabia. In February 2018, ACWA Power won a 25-year power purchase agreement (PPA) for the Sakaka project at a tariff of SAR 0.08782 (USD 0.0234/EUR 0.0200) per kWh.