RIYADH: State-owned Saudi Electricity Co. has completed the issuance of the two tranches of sukuks — including green and regular — valued at $2 billion as part of its international fundraising program. The green sukuk tranche was issued for $1.2 billion with a maturity of 10 years and a fixed return of 4.6 percent yearly as it was priced at a difference of 120 basis points compared to the yield on treasury bills, representing a 45-bps drop in the indicative target return disclosed for the tranche while opening the order book. The company also stated that the regular tranche of sukuk amounted to $800 million with a maturity of 30 years and a fixed return of 5.6 percent annually, as it was priced at a difference of 205 bps compared to the return on treasury bills, resulting in 35 bps decline from the indicative target return while opening the order book. “This issuance of sukuk is in line with the company’s strategy to diversify its financing sources and expand its investor base in international markets. It also supports the company’s aspirations to finance its projects through innovative and sustainable financing solutions,” said Khaled bin Hamad Al-Gnoon, CEO of SEC. “We are very pleased with the large turnout of international investors and their confidence in the investment story of the Saudi Electricity Company and its creditworthiness. This confirms the growing confidence of international investors in Saudi companies,” Al-Gnoon added. The power distribution company appointed HSBC Bank, Standard Chartered Bank, JPMorgan Securities, First Abu Dhabi Bank, Al Ahli Capital, Al Rajhi Capital, Saudi Fransi Capital, and others as Sukuk offering managers. On March 30, the company announced plans to meet with fixed-return investors in preparation for the issuance of prospective sukuk. To that purpose, it arranged a virtual promotional campaign that drew a huge number of foreign investors from Asia, Europe, and the Middle East, as well as a global conference call in which many investors participated, as more than 350 investors from local and international financial institutions participated. During the call, the company presented its investment story, sustainability aspiration and the parameters applied to the green sukuk. Following the call, the corporation opened the order book for issue on April 3, and it closed on the same day, with total requests for both tranches totaling around $15.4 billion, with a coverage rate of about 7.7 times. The order book for the issuance is the biggest for a Middle Eastern issuer in over a year. Furthermore, with the issuance, the corporation accomplished the rare performance of issuing 30-year sukuk, only something a few corporate issuers globally have been able to do. SEC has received advanced credit ratings from international rating agencies such as Moody’s, rating it A1 with a positive outlook, and Fitch rated it A with a stable outlook.