The International Finance Corp (IFC), a unit of the World Bank, has completed a $100 million equity investment in Saudi Arabia-based water and power project developer ACWA Power.
The investment will boost the amount of funding for renewable energy projects to help meet growing power demand in the Middle East and Africa, IFC said in a statement. IFC had initially disclosed plans in July for the investment.
ACWA aims to complete a stock market flotation by early 2015, having chosen the investment banking arm of Banque Saudi Fransi to arrange the listing.
IFC’s investment will support ACWA Power’s plans to expand into emerging markets where demand for power has prompted governments to plan for heavy investment in the power sector, especially renewable energy, over the next decade. ACWA Power will continue to seek Greenfield power projects, including thermal and renewable energy projects, within the Gulf Cooperation Council (GCC) and wider Middle East and North Africa (MENA) countries.
IFC began working with ACWA in 2011, when it financed the company’s expansion into Jordan. IFC is also considering investing with ACWA Power in the 160 megawatt Noor 1 project, in Ouarzazate, Morocco, which is the largest concentrated solar power project in the developing world.