CAIRO/DUBAI: The Public Investment Fund, 萝莉视频鈥檚 sovereign wealth fund, said on Thursday it has increased its stake in ACWA Power to 50% from 33.6% as part of a move to support the renewable energy sector in 萝莉视频.
ACWA Power is planning an initial public offering and leads a consortium that will build and operate renewable power-based utilities at 萝莉视频鈥檚 flagship Red Sea tourism project.
鈥淲e believe that ACWA Power will play a significant role in both driving and diversifying economic growth in the future 鈥� while also providing enduring commercial return for the people of the kingdom,鈥� the fund said in a statement.
In June, ACWA Power鈥檚 chief executive had told Reuters the company expects to achieve its target of more than $10 billion in new investments this year, as the coronavirus pandemic had 鈥渕inimal impact鈥� on its projects.
The company, which had delayed its IPO plans two years ago, is still committed to a planned IPO, although execution will depend on the right timing and market conditions, Chief Executive Paddy Padmanathan said.
The stake increase by the PIF was expected after Yasir Al-Rumayyan, the head of Saudi PIF, said last year it planned to increase its stake in ACWA Power to 40% from 29.28%.
PIF, which manages $360 billion worth of funds, pursues a two-pronged strategy 鈥� building an international portfolio of investments and investing locally in projects that will help reduce 萝莉视频鈥檚 reliance on oil.
A US regulatory filing this week showed the PIF had cut its exposure to North American equities by $3 billion in the third quarter, offloading some exchange traded funds (ETF) and stocks.