ACWA Power inks debt restructuring deal for Turkish affiliate

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Acwa Power, a leading Saudi developer of utility projects, has announced that it has, along with its related subsidiary entities, reached a debt and ownership restructuring agreement with the lenders and minority shareholders of its Turkish affiliate - Acwa Guc.

As per the deal, the lenders will convert their outstanding loan, under certain shareholding pacts and convertibility conditions, and become a shareholder of the Turkish unit, said Acwa Power in its filing to Saudi bourse Tadawul.

Acwa Guc, a partially and indirectly owned affiliate of Acwa Power, owns and operates the 950MW Combined Cycle Gas Turbine (CCGT) power plant in Kirikkale, Turkey.

As consideration for transfer of loan receivables, a 100% owned subsidiary of Acwa Power, will pay $132.4 million to the lenders in installments over a three-year period, it stated.

Following the transaction, Acwa Guc will be free of any commercial, third-party debt. Further, it is expected to continue to remain an equity accounted investment of Acwa Power, it added.