Islamic finance deal of the year – Saudi Arabia: Acwa Power’s SR1.8 billion sukuk

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Islamic finance deal of the year – Saudi Arabia: Acwa Power’s SR1.8 billion sukuk



Name of borrower: Acwa Power

Amount: SR1.8 billion

Tenor: Seven years

Underwriters: HSBC Saudi Arabia, SNB Capital

Date: February 1, 2023

 




The SR1.8 billion ($470 million) senior unsecured sukuk issued by Acwa Power marks the company's second issuance under its SR5 billion programme, following a SR2.8 billion sukuk in 2021.

The seven-year deal came with a five-year call option.

The incorporation of a first-of-its-kind callability structure was notable, providing the issuer with better pricing flexibility.

Its structure also incorporated a step-up to motivate the exercise of the call option. The deal was 2.2 times oversubscribed, with total orders amounting to SR4.02 billion.

HSBC Saudi Arabia and SNB Capital served as joint lead managers on the deal.

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