Saudi Electricity Co. completes issuance of two sukuk tranches valued at $2bn  

Saudi Electricity Co. completes issuance of two sukuk tranches valued at $2bn  

RIYADH: State-owned Saudi Electricity Co. has completed the issuance of the two tranches of sukuks — including green and regular — valued at $2 billion as part of its international fundraising program.

The green sukuk tranche was issued for $1.2 billion with a maturity of 10 years and a fixed return of 4.6 percent yearly as it was priced at a difference of 120 basis points compared to the yield on treasury bills, representing a 45-bps drop in the indicative target return disclosed for the tranche while opening the order book.

The company also stated that the regular tranche of sukuk amounted to $800 million with a maturity of 30 years and a fixed return of 5.6 percent annually, as it was priced at a difference of 205 bps compared to the return on treasury bills, resulting in 35 bps decline from the indicative target return while opening the order book.

“This issuance of sukuk is in line with the company’s strategy to diversify its financing sources and expand its investor base in international markets. It also supports the company’s aspirations to finance its projects through innovative and sustainable financing solutions,” said Khaled bin Hamad Al-Gnoon, CEO of SEC.

“We are very pleased with