DEAL: Acwa Power’s collateralised bond

Author: Lizzie Meager | Published: 7 Jun 2017

In a positive sign for local capital markets, Saudi Arabia’s International Company for Water and Power Projects (Acwa Power) has raised $814 million in a debt offering that combines elements of both structured and project finance.

Saudi has been working to develop its capital markets
The first-of-its-kind deal, which carries a 22-year maturity, means the company is able to monetise cash flows from stakes it holds in eight strategically important projects across Saudi Arabia.

The structure is based on the cash flow and fees generated from the projects – long-term gas and water contracts – which will service the bonds. The new notes are subordinated to the holding company’s existing project debt.

“The company wanted to raise capital, and it had strategically valuable assets already on hand – you couldn’t do this with any type of asset,” said Shearman & Sterling partner Marwa Elborai, who advised the bank syndicate. “It’s the...



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