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SEC issues $1.3bn international green sukuk

September 16, 2020

Saudi Electricity Company (SEC), the largest utility company in Mena, has completed a dual tranches RegS international Green Sukuk issuance, with five and 10 year tenors, in amounts of $650 million for each tranche.

The launch of the Green Sukuk Issuance was announced on September 10, and SEC completed a very successful transaction in intraday execution on the same day with almost 4x oversubscriptions. The order book came in excess of $5.2 billion and attracted a combination of more than 267 of high quality institutional investors and dedicated green accounts from 22 countries in Asia, Europe and the Middle East.

This SEC’s issuance of $1.3 billion marks the first Green Sukuk Issuance out from KSA in international markets and it ranks the largest of its kind from the Mena region in 2020.

The transaction also marks the first Saudi USD denominated Green Sukuk issuance, as well as the cheapest ever issuance for SEC since it started to access international market.

Fahad Al Sudairi, SEC's President and Chief Executive Officer, said: “We are delighted with the high interest from the international investors in SEC’s credit story. This Sukuk issuance comes in line with SEC’s strategy to diversify its funding sources, broaden its investor base in the international markets and supports its aims to seek innovative and sustainable finance for our green projects portfolio.

He added the issuance attracted more than 267 international investors from 22 countries worldwide and this reaffirms continued global investors’ confidence in the national Saudi economy and Saudi corporates.


islamic finance