Saudi Electricity Company (SEC) has successfully issued a $2.75 billion dual-tranche senior unsecured sukuk under its international Sukuk Programme. The offering comprises a $1.25 billion 10-year green sukuk with a profit rate of 5.489% per annum, maturing on 18 February 2035, and a $1.5 billion 5-year conventional sukuk maturing on 18 February 2030, with a profit rate of 5.225% per annum.
The green tranche marks SEC’s fourth issuance 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 $3.75 billion through green sukuks, supporting its net-zero ambition by 2050 and aligning with Saudi Arabia’s Vision 2030.
A virtual investor roadshow on 10 February attracted strong interest from Asia, Europe, and the Middle East. The issuance was priced the following day, with the order book exceeding $12 billion, representing an oversubscription of 4.3 times.
SEC holds high investment-grade credit ratings: Aa3 (stable) from Moody’s, A+ (stable) from Fitch, and A (positive) from Standard & Poor’s.
Acting CEO of SEC, Eng. Khaled Al-Ghamdi, stated, “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.” He added that the funds will be invested in electricity grid infrastructure, integrated renewable energy sources, and accelerated digitalisation and automation initiatives.
The sukuk will be listed on the London Stock Exchange.
