ACWA Power allocates majority of spending from rights issue on MENA projects
ACWA Power has allocated 53 percent to 60 percent of the proceeds from its 7.12 billion Saudi riyals ($1.9 billion) rights issue for spending in the Middle East and North Africa (MENA).
The company expects to spend between SAR 3.7 billion and SAR 4.2 billion on current and future projects in the MENA region, the Saudi-listed company stated in its rights issue prospectus.
The expenditure for Central Asia is expected to be between 22 percent and 25 percent, or SAR 1.5 billion to SAR 1.7 billion.
Therefore, the total spend on renewable energy, water and gas projects will reach between SAR 5.2 billion and SAR 5.9 billion, the prospectus said.
ACWA Power anticipates allocating a maximum of 20 percent of the proceeds, amounting to SAR 1.4 billion, for mergers and acquisitions.
The potential allocation for general corporate purposes will reach a maximum of SAR 352 million.
As of December 31, 2024, ACWA Power's portfolio comprises 94 projects in 13 countries, with a total investment cost of SAR 364.5 billion ($97.32 billion).
The projects are a mix of renewable energy and storage, water desalination, green hydrogen, and flexible generation (conventional fuel).
According to the prospectus, 52 projects are in operation at a total investment cost of SAR 196.9 billion, 24 are under construction valued at SAR 109.5 billion and 18 are in the advanced development stage worth SAR 58.1 billion.
The company clarified that advanced development stage projects refer to ones where a preferred bidder has been selected, a long-term offtake agreement has been signed, or deals have been negotiated, where it has committed significant financial resources and reaching financial close is at an advanced stage.
The company's shareholders will vote on the board of directors' recommendation to increase the capital through a SAR 7.12 billion rights issue on 30 June 2025.
(Editing by Anoop Menon) (anoop.menon@lseg.com)
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