ACWA Power completes restructuring of debt, ownership in Turkish affiliate

(MENAFN) Saudi utility giant ACWA Power has completed a significant restructuring of its debt and ownership in its Turkish affiliate, ACWA Guc, by converting outstanding loans into equity. This strategic move follows an agreement with major lenders and minority shareholders. ACWA Guc operates a notable 950-megawatt combined cycle gas turbine power plant located in Kirikkale, Türkiye, and is partially and indirectly owned by ACWA Power.

Under the new deal, lenders will convert their loans into shares of ACWA Guc based on specific shareholding agreements and conversion terms outlined in a statement from the Saudi Stock Exchange, or Tadawul. To facilitate this transition, a wholly owned subsidiary of ACWA Power will make payments totaling SR496.5 million (USD132.2 million) to the lenders in installments over a three-year period.

Following this restructuring, ACWA Guc will no longer carry any commercial debt to third parties and will continue to be classified as an equity investment for ACWA Power. This deal is part of a broader effort by ACWA Power to streamline its financial structure and bolster its investment position.

The USD1 billion Kirikkale Power Plant, inaugurated in November 2017 with a ceremony attended by high-profile officials including President Recep Tayyip Erdogan and former Energy Minister Berat Albayrak, stands as the largest Saudi energy investment in Türkiye’s power sector. The plant, with a capacity of 1,000 MW, is capable of meeting approximately 3 percent of Türkiye’s total electricity demand. It is recognized for its high efficiency, ranking among the top three combined cycle gas power plants in Türkiye, and plays a crucial role in providing steady and reliable energy to the national grid while contributing to significant gas consumption savings.

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