IFC funds $100 million in ACWA Power Financial Services

Saudi Arabia-based ACWA Power gets $100 million cash injection from the International Finance Corporation (IFC), a private sector branch of the World Bank, through a subscription to a new share issue.

International Financial Corporation (IFC), which is already a lender and co-investor with ACWA in several major projects, has signed up to acquire newly issued shares in the company.

Saudi government established ACWA Power with a view to strengthen private sector investment into Kingdom’s power & water sector.

It is owned by eight Saudi conglomerates, beside the Kingdom's Public Investment Fund and the Saudi Public Pensions Agency.

The firm has also extended beyond the Kingdom, taking shares in power plants throughout the MENA region involving facilities in UAE, Oman, Egypt, Jordan, Morocco, Turkey and in parts of Southern Africa and South East Asia.

Overall, it now acquires parts of plants in nine countries with a cumulative capacity to produce 15,290MW of power and 2.4mm m3 of desalinated water per day.

The combined investment value of the plants goes to $22 billion.

The recent partnership brings great possibilities, IFC played a vital role being a co-investor and lender on various assets in ACWA Power’s profile, which has formed a concrete relationship between both the companies. Both ACWA Power and IFC are coordinated to deliver electricity and/or desalinated water at the lowest possible cost to support the social and economic development of emerging economies.