Saudi Electricity Company (SEC) completed a USD 2.8 bn dual-tranche sukuk offering on the London Stock Exchange, it said in a disclosure to Tadawul. The senior unsecured, USD-denominated issuance was structured through a special purpose vehicle (SPV).

The details: The offering featured a five-year tranche of USD 1.5 bn with an annual yield of 5.225% and a ten-year green tranche of USD 1.25 bn with an annual yield of 5.489%. Some 13.8k sukuk certificates were issued, each with a nominal value of USD 200k.

Use of proceeds: Proceeds from the offering will be used to fund SEC’s general business needs, including infrastructure and development costs, the disclosure said. Part of the proceeds will be allocated to renewable projects that align with the company’s Green Sukuk Framework, the statement added.

IN CONTEXT- The green tranche is SEC’s fourth offering under its Green Sukuk Framework, through which the company raised USD 3.8 bn since the program launched in 2020, state news agency SPA reports.

REMEMBER- SEC is actively working on funding its green initiatives: In January, SEC signed an MoU with Italy’s state export credit agency Sace to explore credit guarantees to SEC for new sustainable projects, to develop the Saudi electricity system in collaboration with Italy’s EPC and O&M service providers.

ADVISORS- HSBC, Standard Chartered Bank, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Mizuho, MUFG, SMBC, Intesa Saopaolo, Alistithmar Capital, BofA Securities, ICBC, BNP PARIBAS, Emirates NBD Capital, Natixis, Dubai Islamic Bank PJSC, Bank of China, and SNB Capital acted as joint lead managers.

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