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Oman Electricity Transmission Company SAOC (OETC), rated Ba1 (stable) by Moody’s and BB+ (stable) by Fitch, has priced its $750 million Reg S five-year benchmark green sukuk at par, with a 4.662% coupon and a spread set at 110 basis points over US Treasuries.
The price was tightened from the initial price thoughts in the 145bps area.
The final orderbook was in excess of $1.8 billion, excluding JLM interest, with a settlement date of October 29.
The Ijara sukuk structure will be listed on the London Stock Exchange’s International Securities Market.
The certificates are issued by Al Jawaher Assets Company SPC as trustee, with OETC as the obligor. The sukuk is expected to be rated Ba1 by Moody’s and BB+ by Fitch.
Citi, JP Morgan and Standard Chartered Bank were mandated as Joint Global Coordinators alongside Abu Dhabi Commercial Bank, Bank ABC, Bank Muscat, CACIB, DIB, Mashreq and OIB as Joint Lead Managers and Joint Bookrunners.
OETC is the sole transmission operator in Oman providing electricity transmission and dispatch in the Main Interconnected System (MIS), and in the Dhofar region, covering 100% of Oman’s transmission system.
The company is 51% indirectly owned by the Government of Oman and the remaining 49% ownership is with the State Grid International Development Ltd / State Grid Corporation of China, one of the world’s largest transmission network operators.
OETC recently established the Green Finance Framework, with DNV issuing a Second Party Opinion on the Obligor’s Green Finance Framework. Citi is the Green Structurer.
(Writing by Bindu Rai, editing by Seban Scaria)
