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SEC closes SAR 7.5bn sukuk issue

SEC closes SAR 7.5bn sukuk issue
The first tranche of the Islamic bonds amounted to SAR 3 billion ($800 million)
Saudi Electric
5110
0.46% 17.58 0.08

Riyadh – Mubasher: The Saudi Electricity Company (SEC) has closed a SAR 7.5 billion ($2 billion) sukuk issue.

The first tranche of the Islamic bonds amounted to SAR 3 billion ($800 million) with a 4.22% yield, maturing on 27 January 2024, according to a statement.

The second tranche stood at SAR 4.5 billion ($1.2 billion) with a 4.72% yield, while its due date will be on 27 September 2028.

The par value of each note reached SAR 750,000 ($200,000), while the number of issued sukuk was 10,000 for both tranches.

In mid-May, SEC’s board of directors approved to issue sukuk.

Earlier in September, SEC started meetings with fixed-income investors to discuss the possibility of issuing sukuk in the coming period and it appointed Citi, First Abu Dhabi Bank, HSBC, Mizuho, MUFG, NATIXIS, SMBC Nikko and Standard Chartered Bank as joint lead managers.

SEC last reported a 17.3% profit decline, logging SAR 1.85 billion during the second quarter of 2018, compared to SAR 2.23 billion in Q2-17.

SEC’s profits tumbled 91.2%, reaching SAR 633 million during H1-18, from SAR 7.17 billion in H1-17.

By 10:38 am Saudi time, SEC’s stock inched up 0.62%, reaching SAR 16.34.