Saudi Electricity Company (SEC) succeeded in issuing two international tranches in the Regs format, divided into two tranches, the first with the US $ 800 million (3 billion riyals) and five years later, and the second with the US $ 1.2 billion (4.5 billion riyals).
On Thursday, September 13, the company announced its intention to return to international debt instruments markets by launching a promotional campaign to meet investors in preparation for a possible sukuk issue.
Following a highly successful international investor event in Singapore, the UAE and the UK, the investment status of the Saudi Electricity Company was announced. The Sukuk issuance was announced with a coverage of more than 3.5 times and a record of over 380 applications An investor that has exceeded $ 7 billion from international financial institutions in 25 countries in Asia, Europe and America.
The $ 2 billion issue is the first issuance of a distinctive investment grade by Saudi companies from 2014, during which Saudi Electricity Company (SEC) was able to reopen the market for Saudi companies in this Standard Edition.
The issue is also the largest unsecured dollar issue ever issued in the GCC and is also the largest version of RegS ever issued by Saudi companies.
The 10-year maturity and the US $ 1.2 billion issue is the largest segment issued by a Saudi company in RegS form since 2012 and the largest segment issued by any company during 2018.
Sukuk was priced at the lowest point within the initial indicative yield range and only 35 basis points from the benchmark yield on sovereign sukuk. The $ 800 million and 5-year maturities were priced at 115 basis points on the mid- ) And a $ 1200 million 10-year maturity of 160 basis points over the mid-swap curve. This has been a direct start in the trading of sukuks in the international markets (OTC markets) the next day immediately, which maintained their levels of prices for nominal value.
“We are delighted with the high demand from international investors and their confidence in the investment situation of SEC,” said Eng. Ziad Al Shiha, Chief Executive Officer of Saudi Electricity Company. “The launch of this issuance is consistent with the company’s strategy of diversifying its sources of funding and growing its investor base. In the international markets, pointing out that the placement attracted more than 380 international investors in 25 countries around the world to confirm the confidence of international investors in the strength of the national economy ”