ACWA Power sells 35% of stake in 2 subsidiaries for SAR 595.9M

ACWA Power signed on July 16 a sale and purchase agreement to sell 35% of its shareholding in ACWA Power Bash Wind Project Holding Co. Ltd. and ACWA Power Uzbekistan Wind Project Holding Co. Ltd. to China Southern Power Grid International Co. Ltd.

In a statement to Tadawul, the company said the SAR 595.9 million agreement was signed between ACWA Power Green Energy Holding and CSGI.

Following the successful completion of the conditions precedent, ACWA Power share in the two projects is 65% currently.

ACWA Power Bash Wind and ACWA Power Uzbekistan Wind hold 100% of the joint ventures relating to Bash and Dzhankeldy 1GW wind projects in Uzbekistan.

The Bash 500 MW wind farm and Dzhankeldy 500 MW wind farm are greenfield independent power projects that are developed by ACWA Power in Uzbekistan.

ACWA Power and JSC National Electrical Grid of Uzbekistan (sole offtaker) signed a 25-year power purchase agreement for the development, construction, and operation in aggregate of 1 GW.

The projects, located in the Bukhara region, are being developed on a ‘build, own, operate, and transfer’ basis

The projects are under construction, and the estimated total investment cost is SAR 5.1 billion.

The sale is part of ACWA Power’s capital recycling strategy in addition to the company’s business model that encourages cooperation with strong and reputable equity partners.

The proceeds will be used for general corporate purposes.

CSGI is the overseas investment arm of Hong Kong-based CSG. CSG and CSGI are rated 'A+' (sovereign rating) by S&P, Moody’s, and Fitch

CSGI is one of the top grid companies in China as well as a worldwide leading grid company covering business lines of power grid, power transmission, pump storage hydropower, renewable energy, and integrated smart energy.