SEC commences offering of USD-denominated green, conventional Sukuk

Saudi Electricity Co. headquarters

Saudi Electricity Co. (SEC) announced today, April 3, commencing the offering of US dollar-denominated senior unsecured green and/or conventional Sukuk, under its newly established international Sukuk programme, according to a statement to Tadawul.
 

The Sukuk offering will be through a special purpose vehicle and by way of an offer to eligible investors in the Kingdom of Saudi Arabia and internationally, the company said.
 

The amount and terms of the Sukuk will be determined subject to the market conditions, the utility said. It added that the issuance end date will be April 4, 2023, which is the expected date of completion of the Sukuk offering, subject to market conditions.
 

SEC has mandated HSBC Bank plc, Standard Chartered Bank, J.P. Morgan Securities plc, First Abu Dhabi Bank PJSC, MUFG Securities EMEA plc, Mizuho International plc, SMBC Nikko Capital Markets Limited, SNB Capital Company, Al Rajhi Capital Company, Saudi Fransi Capital, Abu Dhabi Islamic Bank, Bank of China, Abu Dhabi Commercial bank, Natixis, and Société Générale as joint lead managers in relation to the Sukuk offering.
 

The minimum subscription value will be $200,000 and in increments of $1,000 in excess thereof, said SEC, adding that the offer price is subject to market conditions.

The Sukuk maturity will be 10 years for green Sukuk and/or 30 years for conventional Sukuk, subject to market conditions, the company noted.

The Sukuk may be redeemed prior to the scheduled maturity date in certain cases as detailed in the base prospectus in relation to the Sukuk.

The announcement is not intended as an invitation or offer to purchase, acquire or subscribe to any securities and is subject to the terms and conditions of the Sukuk. SEC will announce any other relevant material developments in due course as required by the relevant rules and regulations.

The Sukuk will be listed on the London Stock Exchange. The Sukuk may be sold in reliance on Regulation S under the US Securities Act of 1933, as amended.