$2 billion Saudi Electricity issues green sukuk

The Saudi Electricity Company announced today that it has completed issuing sukuk divided into two tranches (green and regular), with a total value of $2 billion (about 7.5 billion Saudi riyals).

Green sukuk
The company clarified that the green sukuk tranche was issued at a value of $1.2 billion (about 4.5 billion Saudi riyals) with a fixed return of 4.6% annually and a maturity of 10 years.  45 basis points over the indicative target return announced for the tranche.

It also showed that the regular tranche of sukuk amounted to 800 million US dollars (about 3 billion Saudi riyals), with a fixed return of 5.6% annually with a maturity of 30 years, and achieved 205 basis points over the yield of treasury bills, this also represents a reduction of 35 basis points from the return. 

The indicative target announced for the slide to open the order book, and this is identical pricing to the pricing of government sovereign sukuk in the Kingdom of Saudi Arabia.

This came after the company announced on Thursday, March 30, 2023, its intention to hold meetings with fixed-return investors in preparation for issuing potential sukuk. To this end, a virtual promotional campaign was organized, which received wide attendance from international investors in Asia, Europe, and the Middle East, followed by a global conference call in which he participated. 

A large number of fixed-return investors reviewed the investment plan of the Saudi Electricity Company, the ambitions of its sustainability strategy, and the specifications of the green sukuk expected to be offered.

$15.4 billion
After that, the company announced that the order book for issuance would be opened on Monday, April 3, 2023, and it was closed on the same day, with the total orders amounting to about $15.4 billion for both tranches.

Through the issuance, the company achieved a rare achievement represented in the issuance of 30-year sukuk, and this was achieved by only a few issuers from companies in the world to put it on the market, and the order book for the issuance is the highest order book for an issuer from the Middle East in more than  general.

27 countries
More than 350 investors from local and international financial institutions in more than 27 countries from the Middle East, Asia and Europe participated in the application book.