ACWA Power increases its ownership in Shuqaiq

Updated 02 April 2014
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ACWA Power increases its ownership in Shuqaiq

ACWA Power announced that their fully owned subsidiary namely Saudi Arabian Water and Electricity Company (SAWEC) acquired a 6 percent indirect shareholding in Shuqaiq Water and Electricity Company (SqWEC) from Mitsubishi Corporation of Japan (MC).
SqWEC owns an 850 MW power generation and 212,000 cubic meters per day of water desalination capacity IWPP Plant in Shuqaiq on the western shores of Saudi Arabia 130 km north of Jazan. The project started commercial operations in May 2010.
Prior to this acquisition, SqWEC was owned by a group of government and private sector investors.
The government ownership was in two parts; 32 percent by Public Investment Fund (PIF) and 8 percent by Saudi Electricity Company (SEC).
The private sector ownership totals 60 percent of the project and was in three parts; ACWA Power (through SAWEC) owning 34 percent, Gulf Investment Corporation (GIC) owning 20 percent and MC owning 6 percent.
The three private sector investors had invested in SqWEC through their holding company Shuqaiq International Water and Electricity Company (SIWEC).
The 6 percent indirect stake of MC in SqWEC was acquired by ACWA Power (through SAWEC) by purchasing all of MC’s shares in SIWEC.
ACWA Power through SAWEC had signed a Share Purchase Agreement for this purpose with MC on July 29, 2013.
Upon completion of the transaction ACWA Power’s indirect stake in SqWEC has increased from 34 percent to 40 percent.
Paddy Padmanathan, CEO of ACWA Power, said: “Acquiring these shares was a part of ACWA Power’s wider strategy to deploy its capital in earnings accretive and value creating transactions. This transaction represented such an opportunity to ACWA Power and furthermore also gave an opportunity to increase its stake in a project which was completed before time and below budget and where ACWA Power is the lead developer. ”
ACWA Power is a developer, investor, co-owner and operator of a portfolio of plants with a capacity to generate 15,979 MW of power and produce 2.4 million cubic meters/day of desalinated water.
The portfolio has an investment value in excess of $23 billion and provides employment to more than 2,400 people in 8 countries.


Moody’s upgrades Egypt’s rating to B2, expects more economic growth

Updated 18 April 2019
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Moody’s upgrades Egypt’s rating to B2, expects more economic growth

  • Moody’s believes Egypt’s large domestic funding base would support its resilience to refinancing shocks
  • The ratings agency expects energy price hikes as part of Egypt’s fuel subsidy reform

CAIRO: Rating agency Moody’s has upgraded Egypt’s sovereign rating, saying ongoing economic reforms will help improve its fiscal position and boost economic growth.
Moody’s upgraded the long-term foreign and local currency issuer ratings of Egypt to B2 from B3. The outlook was changed to stable from positive.
The decision was based on “Moody’s expectation that ongoing fiscal and economic reforms will support a gradual but steady improvement in Egypt’s fiscal metrics and raise real GDP growth,” the agency said in a statement late on Wednesday.
Moody’s also said it believed Egypt’s large domestic funding base would support its resilience to refinancing shocks despite the government’s very high borrowing needs and interest costs.
Moody’s said it expected a steady improvement of Egypt’s fiscal position, “albeit from very weak levels.”
Maintained primary budget surpluses combined with strong nominal GDP growth would help reduce the general government debt/GDP ratio to below 80 percent by the 2021 fiscal year from 92.6 percent in the 2018 fiscal year, it said.
Egypt’s fiscal year runs from July to June.
Moody’s also said it expected energy price hikes as part of Egypt’s fuel subsidy reform, which it believed would be completed in the 2019 fiscal year. This, along with the fiscal reforms implemented in the last few years, would allow the government to maintain the primary budget balance in surplus in the next few years, Moody’s said.
The upgraded rating was expected, but still good news for Egypt, said Allen Sandeep, head of research at Naeem Brokerage.
“It should help its case for new international bond issuances as we move forward,” he said.
Egypt is pushing ahead with tough economic reforms as part of a three-year $12 billion IMF loan deal signed in 2016.
The reforms, aimed at attracting investors who fled during the 2011 uprising, have included new taxes, deep cuts to energy subsidies and a currency devaluation. The reforms have helped the economy recover, but have also put the budgets of tens of millions of Egyptians under strain.