ACWA Power’s maiden bond secures ‘BBB-‘ rating from Fitch with “Stable” outlook

ACWA Power Investment & Management One Ltd. (APMI One) announced that Fitch Ratings assigned the 814 MUSD 5.95% p.a. senior secured bonds (ACWA 39) a ‘BBB-‘ rating with a “Stable” outlook.

The bond, issued in May 2017 by ACWA Power’s wholly-owned DIFC-incorporated subsidiary, is secured by cash flows and other security from a diversified cross-section of 8 ACWA Power projects in Saudi Arabia as well as from NOMAC, ACWA Power’s wholly-owned operations and maintenance firm.

Being located in the western and eastern provinces of the Kingdom, each of these 8 assets is critical to Saudi Arabia’s power and water infrastructure.

“ACWA 39 has provided us with the ideal launch platform for our upcoming project and corporate finance needs for which RegS/144A and other international issuances as well as those in Saudi Arabia’s Debt Capital Market will be our mainstay,” Rajit Nanda, Chief Investment Officer at ACWA Power, said.

At the time of its issuance, ACWA 39 was the largest and the first investment grade private sector dollar bond offering by a private sector Saudi company.

The bond, due to mature in 2039, currently has 2 IG ratings with Fitch’s ‘BBB-’ and Moody’s ‘Baa3’, both with ‘Stable’ outlook. Subsequently, APMI One has withdrawn related ratings with S&P.