Saudi Electricity plans to issue USD-denominated sukuk

Saudi Electricity Co. headquarters

Saudi Electricity Co. (SEC) announced its plan to hold meetings with fixed-income investors starting today, Feb. 5.

Depending on market conditions, these meetings will likely be followed by the issuance of priority unsecured USD-denominated sukuk as part of the company’s international sukuk program.

In a statement to Tadawul, the company said the potential offering is anticipated to be conducted via a special-purpose vehicle to qualified investors both within and outside Saudi Arabia.

The offering value will be determined later based on market conditions and the company's requirements at that time.

The issuance is to finance general corporate purposes, including capital expenditures, SEC added.

Standard Chartered Bank, HSBC Bank plc, SMBC Nikko Capital Markets Limited, MUFG Securities EMEA plc, Mizuho International plc, JP Morgan Securities plc, Al Rajhi Capital, First Abu Dhabi Bank, Mashreq Bank, Dubai Islamic Bank, KFH Capital Investment Co., and Bank of China were appointed as joint lead managers for the potential offering.

The offering is subject to regulatory approvals and will be conducted in accordance with the relevant regulations, the statement noted.

This announcement does not constitute an invitation or an offer to buy, own, or subscribe to any securities. It is subject to the sukuk terms and conditions.

Any new developments will be announced in due course in accordance with relevant regulations, the statement added.