Saudi Electricity Company Successfully Prices $2.75 Billion Dual-Tranche Sukuk Offering With Green Tranche

Saudi Electricity Company (SEC) has announced the successful pricing of a $2.75 billion dual-tranche senior unsecured RegS Sukuk under its international Sukuk Programme. This issuance includes a $1.25 billion 10-year green Sukuk with a profit rate of 5.489% annually and a $1.5 billion 5-year conventional Sukuk with a profit rate of 5.225% annually.

The green tranche is SEC's fourth under its Green Sukuk Framework, aimed at funding renewable energy and efficiency projects. Since 2020, SEC has raised $3.75 billion through green Sukuks, reinforcing its commitment to decarbonisation and expanding its portfolio of eligible green projects.

"This supports SEC’s net-zero ambition by 2050 and aligns with its ESG strategic objective of advancing Saudi Arabia’s energy transition in line with Vision 2030," stated the release.

On February 10, SEC conducted a virtual investor roadshow that garnered significant interest from Asia, Europe, and the Middle East. The issuance was priced successfully the next day, with an order book exceeding $12 billion, indicating an oversubscription of 4.3 times.

SEC maintains high investment-grade credit ratings from major agencies: Aa3 (stable) from Moody's, A+ (stable) from Fitch, and A (positive) from Standard & Poor’s.

Strategic Growth and Infrastructure Development

Acting CEO Eng. Khaled Al-Ghamdi commented on the issuance: "This issuance reaffirms the company’s ability to attract strong investor interest in international markets, supported by its robust credit standing and pivotal role in providing sustainable and highly reliable energy solutions."

He further added that this step is crucial for SEC's growth plans, focusing on enhancing electricity grid infrastructure, integrating renewable sources, and advancing digitalisation efforts to meet customer expectations effectively.

This initiative aligns with Saudi Vision 2030 targets by contributing to the transformation of the energy sector towards greater sustainability.

With inputs from SPA