Saudi Electricity's $1.3bln green sukuk oversubscribed

Company says it received 'high demand' from investors

  
Image used for illustrative purpose. A general view of power plant number 10 at Saudi Electricity Company's Central Operation Area, south of Riyadh.

Image used for illustrative purpose. A general view of power plant number 10 at Saudi Electricity Company's Central Operation Area, south of Riyadh.

REUTERS/Fahad Shadeed

State-controlled Saudi Electricity Company (SEC) has generated a lot of investor interest for its $1.3 billion international green sukuk offering, which received orders of more than $5 billion, it has been confirmed.

The kingdom’s electric transmission monopoly last week announced the sale of bonds in a two-part offering, denominated in US dollars. It's the first public green issuance from the region this year and the proceeds will be used for green-friendly projects.

The high interest received from investors in the Middle East, Asia and Europe pushed the oversubscription rate to four times, the company said in bourse filing on Sunday.

“The Green Sukuk issuance received high demand from international investors… and was four times oversubscribed,” the company said

A total of 6,500 bonds, or sukuk, were issued, with the maturity set for five and ten years.

A fixed profit rate of 1.74 percent per annum was assigned for the five-year tranche and 2.413 percent for the ten-year tranche.

“[The] total orders value for both tranches [exceeded] 5.2 billion dollars,” the company said.

SEC was trading 1.1 percent up on Sunday morning.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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