International Company for Water & Power Projects (ACWA Power) has announced the official first closing of the Powervest Fund with commitments of SR596 million ($159 million).

The fund is domiciled in the Kingdom and set up under investment regulations of the Capital Market Authority (CMA) as a 12-year closed ended privately placed fund managed by SAMBA Capital & Investment Management Company (SAMBA Capital).

The fund is a first of its kind initiative in the region, involving a dedicated captive infrastructure fund that has the right to co-invest with ACWA Power in various projects in the conventional power generation and water desalination space across ACWA Power investment regions.

Additionally, the fund breaks new ground in becoming the first Shariah-compliant specialized infrastructure investment vehicle in the Kingdom.

Paddy Padmanathan, president and CEO of ACWA Power, stated: “ACWA Power is proud to have attracted such a strong group of financial and strategic partners of high repute into this captive co-investment fund.”

In keeping with the path-breaking nature of the transaction, the fund has attracted a group of sophisticated anchor investors comprising multilaterals, pension funds, sovereign institutions and parastatals into a long-term partnership framework with ACWA Power.

The investors in the fund include Arab Petroleum Investment Corporation (APICORP), Public Investment Fund (PIF), Saudi Aramco Investment Management Company (SAIMCO), The Arab Investment Company (TAIC) and the Islamic Development Bank (IDB).

Thamer Al-Sharhan, MD, ACWA Power, said. “The fund brings to the fore ACWA Power’s philosophy of building partnerships and leveraging capital available within the Kingdom.”

Rajit Nanda, chief investment officer of ACWA Power, said: “The first closure of a very unique co-investment and partnership initiative once again demonstrates ACWA Power’s willingness and ability to engage with multiple ‘best in class counterparties’ and overcome multiple challenges toward achieving innovative solutions to sustain its growth.”