Dubai: Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has taken a 15.2 per cent direct stake in Riyadh-based ACWA Power, a developer and operator of power and water plants, the two announced in a joint statement on Wednesday. The PIF already owns a 9.8 per cent stake in ACWA through a subsidiary, Sanabil Direct Investments Company, bringing its total shareholding in the company to 25 per cent, the statement said.

The investment will be in the form of a capital increase and proceeds will be used to “support ACWA’s growth strategy and investment plan,” it said.

Plans for the stake sale have been in the works since 2016, when the PIF hired HSBC to advise it on the purchase.