acwa: ACWA will finance renewable energy projects with green bonds

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RIYAD: ACWA Power, which is partly owned by Saudi Arabia’s sovereign wealth fund PIF, will consider issuing green bonds starting next year to fund some of its renewable energy projects, its chief executive said on Monday.

ACWA Power already has five certified green finance projects, which together will require just under $ 10 billion in funding, ACWA CEO Paddy Padmanathan told Reuters.

“From a bond perspective, you need to have operating assets so you can then show income to create the bond. So we’ll get there,” he said on the sidelines of a financial conference at Riyadh.

“With this portfolio itself, there are a lot of opportunities for us to look at green bonds, and we will definitely be looking at it in 2022 and beyond.”

Earlier this month, ACWA Power announced plans to raise up to $ 1.2 billion in an Initial Public Offering (IPO) that is expected to be Saudi Arabia’s largest since debuting on the market of the oil giant Aramco, the largest IPO in the world.

Last month, ACWA and a consortium secured funding for Sudair Solar PV, a 1.5 gigawatt plant that is the first under the Public Investment Fund (PIF) renewable energy program.

The Water & Electricity Holding Company (Badeel) owned by PIF and Aramco, through a unit, joined ACWA in the consortium.

ACWA said the 3.4 billion riyal ($ 907 million) project will be one of the largest single-contract solar PV plants in the world and the largest in Saudi Arabia. .

($ 1 = 3.7506 rials)


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