Saudi Electricity holds call with fixed income investors for green sukuk issuance

Saudi Electricity Co. (SEC) starts today, Sept. 9, holding calls with fixed income investors in Asia, Europe and the Middle East in preparation for potential issuance of dollar-denominated fixed rate RegS senior unsecured international green sukuk.

The company said in a bourse statement that the issuance amount is subject to market conditions and SEC’s requirements, adding that the aim is to finance certain eligible green capital projects, as described in its Green Sukuk Framework (GSF).

SEC mandated HSBC and MUFG as Green Structuring Advisors along with First Abu Dhabi Bank (FAB), HSBC, JPMorgan, MUFG and Standard Chartered Bank as Joint Lead Managers.

The issuance is subject to the approval of the relevant official authorities as the stabilization rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will also apply.

The potential offering of the green sukuk will be limited to qualified investors in the jurisdiction in which the offering will be made in accordance with the rules and regulations of such jurisdictions.

The company will announce any further developments in due course.

The GSF has been prepared in accordance to ICMA Green Bond principles and in alignment with European Union (EU) taxonomy regulation environmental objectives regarding mitigating climate change.

The GSF has been independently reviewed and assessed by an international second party ESG verifier (Vigeo Eiris). The independent rating arrived at a ‘reasonable’ assurance (the highest level of assurance) on the contribution of the contemplated green sukuk to sustainability.