Marafiq plans debut riyal bond

Marafiq plans debut riyal bond
Updated 26 March 2013

Marafiq plans debut riyal bond

Marafiq plans debut riyal bond

DUBAI: Marafiq, a utility services provider to two industrial cities in Saudi Arabia, may conduct a debut local currency bond issue after picking HSBC's Saudi Arabian arm to advise it on raising new corporate debt.
"It is likely to be a debt capital markets transaction," a company spokesman told Reuters by email in response to questions. He said HSBC had been appointed to advise on the fund-raising but that a target amount had not yet been decided.
The company, which counts SABIC and Saudi Aramco as shareholders, will use the money for general business activities, three banking sources told Reuters yesterday.
Should Marafiq choose the capital markets route, a deal would likely surface either late this year or early in 2014, one of the sources said. Traditionally, it can take a number of months between deciding to complete a maiden bond deal and coming to market, given the lengthy documentation process.

Saudi companies looking to raise funds have increasingly turned to the Kingdom's debt capital markets as they aim to diversify funding sources away from bank loans and take advantage of high investor liquidity.
National Shipping Co. of Saudi Arabia (Bahri) is considering a debut Islamic bond issue to help refinance debt taken on for its $ 1.3 billion acquisition of Saudi Aramco's marine unit last year, sources told Reuters earlier this month.
Meanwhile, Savola Group 2050.SE, Saudi Binladin Group, Almarai and Sadara Chemical Company have all priced this year or are in the process of printing local currency sukuk deals.
Marafiq's last fundraising was a SR 4.5 billion ($ 1.2 billion) long-term Islamic loan, signed in February 2012 with five Saudi banks, to help fund its expansion plans. HSBC was also financial adviser on that transaction.
Marafiq is tasked with providing water, wastewater and power services to the industrial cities of Jubail, on the eastern coast of the Kingdom, and Yanbu, on its western coast.


Saudi Arabia’s Amkest Group signs deal with US green energy firm

Amr Khashoggi, Chairman of Amkest Group and Scott Poulter, Chief Executive of Pacific Green Technologies
Updated 05 December 2020

Saudi Arabia’s Amkest Group signs deal with US green energy firm

Saudi Arabia’s Amkest Group signs deal with US green energy firm
  • Its expansion into Saudi Arabia through this joint venture is no surprise since the Kingdom is aiming for 30 percent of its energy to come from renewable sources by 2030

RIYADH: US-based Pacific Green Technologies Inc. (PGTK) has signed a joint venture agreement with Amr Khashoggi Trading Co. Ltd. (Amkest Group) to incorporate a company in Saudi Arabia for the sale of Pacific Green environmental technologies.
Amkest Group, founded in 1983, has a history of success in the Kingdom. Its diverse business portfolio includes construction material production and supply, property development and consulting services.
Commenting on the partnership, Scott Poulter, PGTK’s CEO, said: “Saudi Arabia under its Vision 2030 strategic framework, which calls for 9.5 GW of the Kingdom’s energy to be supplied through renewables by 2030, is set to undergo rapid growth.”
Poulter added: “Pacific Green’s technologies, particularly in the solar power, desalination and battery energy storage system sectors, provide the perfect solution to the Kingdom’s growing demand, and we are excited to leverage Amkest Group’s hard-earned relationships to contribute toward the goals of Vision 2030.”
Amr Khashoggi, chairman of Amkest Group, said: “We believe the combination of our experience and knowledge of the Saudi market, coupled with Pacific Green’s portfolio of technologies, provides the foundation for an incredible partnership and the opportunity to offer multiple complementary technologies.”
Pacific Green is focused on addressing the world’s need for cleaner and more sustainable energy. Its expansion into Saudi Arabia through this joint venture is no surprise since the Kingdom is aiming for 30 percent of its energy to come from renewable sources by 2030.
The deal comes on the back of an expectation that Saudi Arabia will attract more than $20 billion in investments in renewables over the next decade. This forecast was made by the CEO of Saudi National Grid in October, according to a report by S&P Global.