Saudi Arabia’s ACWA Power plans to raise up to $1bn

Saudi Arabia’s ACWA Power International plans to raise as much as SAR3.75bn ($1bn) from an Islamic bond sale, according to people familiar with the matter.

The company, which develops and operates power and water plants across the Middle East, Africa and Asia, is in talks with local banks about the potential deal that would be denominated in Saudi riyals, the people said asking not to be identified as the information is private. The funds would be used for general corporate purposes, they said.

A representative for ACWA declined to comment.

Saudi Arabia’s sovereign wealth fund was set to increase its stake in ACWA to 45 per cent by the end of March, the power company’s chief executive officer Paddy Padmanathan said in February.

That deal is expected to be a precursor to the company’s initial public offering on the Saudi stock exchange.