Saudi Electricity intends to issue dollar-denominated sukuk

The Saudi Electricity Company announced today, Thursday, that it intends to issue dollar-denominated sukuk.

The Public Investment Fund, the kingdom’s sovereign wealth fund, owns approximately 75% of the Saudi Electricity Company.

The company added, in a disclosure to Tadawul Saudi Arabia, that it had appointed HSBC Bank, Standard Chartered Bank, JP Morgan Securities, First Abu Dhabi Bank, MUFG Securities Bank, Mizuho Bank, SMBC, and Al Ahly Financial Company. (SNB Capital), Al Rajhi Capital, Saudi Fransi Capital, Abu Dhabi Islamic Bank, Bank of China, Abu Dhabi Commercial Bank, Natixis and Societe Generale as potential IPO managers.

The company’s disclosure added that the banks will hold meetings with investors for fixed-return instruments, starting tomorrow, Friday, before issuing the sukuk, which may be green or regular sukuk, according to market conditions.

The statement stated that the offering “will be valued according to market conditions and the company’s requirements at the time.”

The Saudi Electricity Company said that what it raises from the offering will be used to finance general purposes, including capital expenditures, or to finance eligible green projects if green sukuk is issued “in accordance with the company’s green sukuk framework.”

The Saudi Electricity Company became the first issuer of green bonds in the kingdom in 2020 when it raised $1.3 billion from selling sukuk in two tranches.

Last month, the company raised 10 billion riyals ($2.66 billion) through a syndicated loan from nine local banks, including the Saudi unit of Qatar National Bank.

In August last year, the company raised $3 billion from another syndicated loan from 15 regional and international banks.

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