Saudi Electricity closes $2 bln dual tranche international sukuk

Saudi Electricity Company (SEC) has successfully completed the issuance of a dual tranche sukuk in Reg S format in international markets on Thursday, Sept. 20, the company said in a bourse statement.

The first tranche has a value of $800 million (equivalent to SAR 3 billion). It has a tenor of 5 years, maturing on Jan. 27, 2024, with a fixed profit rate of 4.222 percent per annum.

The second tranche has a value of $1.2 billion (equivalent to SAR 4.5 billion). It has a tenor of 10 years, maturing on Sept. 27, 2028, with a fixed profit rate of 4.723 percent per annum.

The par value of each sakk is $200,000 while the number of issued sukuk is 10,000 sakk for both tranches.

The order book of the issuance was opened in the morning of Sept. 20, 2018 and closed on the same day with total order value for both tranches exceeding $7 billion. 

The issuance received high demand from international investors in the Middle East, Asia, and Europe, and was 3.5 times oversubscribed. It was priced at the lowest point of the initial indicative price targets, the statement added.

SEC’s board of directors in May approved the issuance of a shariah-compliant sukuk that could be offered in one or multiple tranches aimed to finance the general corporate purposes.  

SEC mandated Citi, First Abu Dhabi Bank, HSBC, Mizuho, MUFG, NATIXIS, SMBC Nikko and Standard Chartered Bank as joint lead managers.