SEC completes issuance of $1.3 bln dual-tranche international green sukuk

Saudi Electricity Co. (SEC) successfully completed issuance of a $1.3 billion dual-tranche international green sukuk, the Tadawul-listed firm said in a statement today, Sept.13.

The value of the offering is $650 million (equivalent to SAR 2.44 billion) for the 5-year tranche, and $650 million (equivalent to SAR 2.44 billion) for the 10-year tranche, the company said.

The total number of sukuk reached 6,500, with a par value of $200,000, the statement said.

The return is a fixed profit rate of 1.74% for the 5-year bond, and 2.413% for the category of sukuk with 10-year maturity.

The utility firm commenced the issuance of dollar-denominated fixed rate RegS senior unsecured international green sukuk on Sept. 10.

The order book of the issuance was closed the same day with a total orders value for both tranches exceeding $5.2 billion.

The green sukuk received high demand from international investors in the Middle East, Asia, and Europe, and was approximately four- times oversubscribed, the statement said.

The sukuk was priced 10 and 15 basis points inside SEC’s yield curve for the 5 and 10 year tranches, respectively.

The issuance will be listed on the Irish Stock Exchange (Euronext Dublin), SEC said, adding that the redemption is on maturity and early redemption following a change of control event.