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Saudi Electricity Company (SEC) has fully redeemed its Tadawul-listed sukuk worth SAR 4.5 bn, according to a Tadawul regulatory filing. The sukuk were set to mature this Tuesday.
Another redemption: The state-owned company also redeemed the entirety of its Euronext Dublin-listed USD 800 mn sukuk last Thursday, according to a separate disclosure. The bonds were set to mature yesterday.
Our take: SEC hasn’t disclosed the reasons behind the early redemptions, but the move could be a sign of favorable market conditions, cost saving efforts, or strategic liability management. This could also be part of a sukuk refinancing scheme to extend SEC’s debt maturities. Early redemptions also signal the company’s confidence in its financial position.
Advisors: HSBC acted as a paying agent in the foreign currency sukuk redemption, while Saudi Fransi Capital was responsible for the local-currency transaction.
