ACWA Power announces the start of issuing sukuk with a maximum amount of 1.8 billion riyals

ACWA Power announced its intention to issue sukuk denominated in Saudi riyals through a private placement, as part of the ACWA Power local sukuk program amounting to 5 billion riyals.

ACWA Power said, in a statement on Tadawul Saudi Arabia, that the value of the offering will be a maximum of 1.8 billion riyals, and the amount and conditions for issuing sukuk will be determined according to market conditions.

She added that the offering starts today, Tuesday, January 10, 2023, and ends on February 21, 2023.

The minimum subscription is one million riyals, and the sukuk offering price and return are determined according to market conditions, while its nominal value is one million riyals.

The maturity period of the sukuk is 7 years, with an option to buy in the fifth year from the date of issuance, depending on market conditions.

The value of the sukuk can be redeemed prior to the established maturity date in certain cases as detailed in the offering prospectus in relation to the sukuk.

It clarified that the target group of the issuance is the institutional and qualified clients as defined in the list of terms used in the regulations and rules of the Capital Market Authority in accordance with Article 8 (a) (1) of the Rules on the Offer of Securities and Continuing Obligations.

The company appointed HSBC Saudi Arabia and SNB Capital as the offering managers and bookrunners.