Saudi Electricity Company (SEC) on 25 September issued a two-tranche $2bn Islamic sukuk on the international debt market to finance its capital spending. The first tranche of $800mn has a tenor of five years, maturing on 27 January 2024, with an annual profit rate of 4.22%, while the second for $1.2bn has a tenor of 10 years, maturing on 27 September 2028, with an annual profit rate of 4.72%. SEC says both issues attracted orders exceeding $7bn. The sukuk was arranged by joint lead managers Citi, First Abu Dhabi Bank, HSBC, Mizuho, MUFG, Natixis, SMBC Nikko and Standard Chartered Bank.

SEC chief executive Ziyad al-Shiha says the sukuk is “part of the company’s strategy to diversify its sources of funding and to attract investors from international markets.” It takes the amount SEC has raised to finance capital projects to $40.8bn, including a $13.3bn government ‘soft loan’ in 2014 (MEES, 26 January). (CONTINUED - 142 WORDS)