Order book exceeds $12 bn, with an oversubscription of 4.3x.. Saudi Electricity Successfully Prices $2.75bn Dual-Tranche Sukuk Offering, Featuring a Green Tranche

Saudi Electricity Company (SEC) has successfully priced a $2.75bn dual-tranche senior unsecured RegS Sukuk under its international Sukuk Programme. The issuance consists of two tranches: a $1.25bn 10-year green Sukuk tranche with a profit rate of 5.489% p.a., maturing on February 18, 2035, and a $1.5bn 5-year conventional Sukuk tranche, maturing on February 18, 2030, with a profit rate of 5.225% p.a.

The green tranche of this offering marks SEC’s fourth green Sukuk tranche under its Green Sukuk Framework, with proceeds allocated to financing or refinancing eligible green projects in renewables and energy efficiency.

Since 2020, SEC has raised a total of $3.75bn through green Sukuks, reinforcing its commitment to decarbonization and the continued expansion of its eligible green project portfolio. This supports SEC’s net-zero ambition by 2050 and aligns with its ESG strategic objective of advancing Saudi Arabia’s energy transition in line with Vision 2030.

On February 10, SEC held a virtual investor roadshow, attracting strong investor interest from Asia, Europe, and the Middle East. The issuance was successfully priced the following day in an intraday transaction, with the order book exceeding $12bn, representing an oversubscription of 4.3 times.
SEC maintains high investment-grade credit ratings from leading international rating agencies: Aa3 (stable) from Moody's, A+ (stable) from Fitch, and A (positive) from Standard & Poor’s.

Commenting on the successful issuance, Eng. Khaled Al-Ghamdi, Acting CEO of SEC, said:" "This issuance reaffirms the company’s ability to attract strong investor interest in international markets, supported by its robust credit standing and pivotal role in providing sustainable and highly reliable energy solutions. This contributes to the transformation of the energy sector toward greater sustainability in alignment with Saudi Vision 2030 targets."

Al-Ghamdi added: "This issuance represents a significant step toward realizing our ambitious growth and expansion plans by injecting further investments into the electricity grid infrastructure, integrating renewable energy sources, and accelerating our digitalization and automation initiatives. This ensures we continue delivering high-quality and reliable electricity services, meeting the expectations of our customers and shareholders”.