The Saudi Electricity Company raised $2.2 billion through the offering of international sukuks in two tranches, to finance the company’s general purposes, including capital expenditures.
The company raised $800 million from 5-year sukuk, according to the final data of the offering. The yield reached 4.942%, which represents 90 basis points above US Treasury bonds for the same term, which is less than the guidance price of 130 basis points.
The company also offered ten-year bonds worth $1.4 billion, with a return of 5.194%, representing 110 basis points above US Treasury bonds for the same term, which is less than the indicative price of 145 basis points.
The Sukuks offered by the company are priority and unsecured Sukuks.
The company appointed Standard Chartered Bank, HSBC Bank, SMBC NCO Capital Markets Limited, MUFG Securities Bank in Europe, the Middle East and Africa, Mizuho International, JP Morgan Securities, Al Rajhi Capital, and First Abu Dhabi Bank, Mashreq Bank, Dubai Islamic Bank, KFH Capital Investment, and Bank of China served as managers for the offering.
