Acwa Power International, a developer, investor, and operator of a portfolio of power generation, is planning to raise about $1 billion by selling Islamic bonds early next year, according to Bloomberg.

Acwa Power has appointed the Saudi unit of HSBC Holdings Plc and Samba Capital to provide advise on the issuance. The Islamic bonds will be put towards helping fund Acwa’s share of an $8 billion acquisition of gasification and power assets at Jazan on Saudi Arabia’s west coast.

The sukuk will be followed by Acwa’s initial public offering (IPO) on the Riyadh stock exchange, which could fetch in the region of $1 billion (the value of the company is estimated at about $8 billion).

Saudi Arabia’s Public Investment Fund (PIF) agreed on November 21 to acquire a 50% stake in Acwa. This is a part of the kingdom’s plans to develop its renewable-power industry.

It has been a period of activity for the company with Acwa also working with US firm Air Products & Chemicals to construct a $5 billion plant in Neom, as the Saudis aim to become the world leaders in Hydrogen production.

Acwa Power is half-owned by the kingdom’s sovereign wealth fund.