Saudi utility powerhouse ACWA Power has successfully restructured its debt and ownership in its Turkish affiliate, ACWA Guc, through a strategic conversion of outstanding loans into equity. <\/p>\n\n\n\n
The move follows an agreement with major lenders and minority shareholders, creating a major shift in the company\u2019s financial strategy.<\/p>\n\n\n\n
ACWA Guc, which operates a 950-megawatt combined cycle gas turbine power plant in Kirikkale, Turkey, is partially and indirectly owned by ACWA Power. <\/p>\n\n\n\n
The restructuring deal involves converting the existing loans into shares of ACWA Guc, in accordance with specific shareholding agreements and conversion terms outlined in a statement on the Saudi Stock Exchange, Tadawul.<\/p>\n\n\n\n
To facilitate this transition, a wholly owned subsidiary of ACWA Power will disburse SR496.5 million ($132.2 million) to the lenders over the next three years. This payment plan aims to streamline the financial obligations of ACWA Guc and enhance its operational efficiency.<\/p>\n\n\n\n
Following the debt conversion, ACWA Power, along with its subsidiaries, current minority shareholders, and relevant stakeholders, has entered into a series of contractual agreements. Post-restructuring, ACWA Guc is expected to be free from commercial debt to third parties and will continue to be classified as an equity investment for ACWA Power.<\/p>\n\n\n\n
The $1 billion Kirikkale Power Plant, inaugurated in November 2017 with a ceremony attended by Turkish President Recep Tayyip Erdogan and then-Energy Minister Berat Albayrak, remains a cornerstone of ACWA Power\u2019s investment in Turkey. <\/p>\n\n\n\n
With a capacity of 1,000 MW, the plant meets approximately 3% of Turkey\u2019s electricity demand and is recognized as one of the most efficient combined cycle gas power plants in the country.<\/p>\n\n\n\n
The Kirikkale facility contributes significantly to Turkey\u2019s energy grid and economic stability by reducing gas consumption and enhancing energy efficiency.<\/p>\n\n\n\n
In addition to this restructuring, ACWA Power recently completed another strategic transaction, finalising the sale of a 35% stake in two of its subsidiaries to China Southern Power Grid International for SR595.9 million. <\/p>\n\n\n\n
The deal, announced in July, involves the sale of shares in ACWA Power Bash Wind Project Holding Co. and ACWA Power Uzbekistan Wind Project Holding Co.<\/p>\n\n\n\n
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