Saudi Electricity has trimmed the yield for its FCY sukuk issuance after receiving over USD 11 bn in orders, signaling strong investor demand, Zawya reports citing news service IFR.The company has yet to say when the roadshow for the sale will end.

Background: The sale is part of a USD-denominated green and / or conventional sukuk program kicked off in March of 2023 and is open to qualified international and local investors. The program has raised USD 2bn so far.

A multi-tranche sale: The company has lowered the yield for its 5-year sukuk to 100 bps over counterpart US Treasuries, down from 130 bps, while lowering the yield for the 10-year tranche to 115 bps over the benchmark US treasuries, down from 145 bps. Information about how much bonds the company plans to allocate to investors and the timeline wasn’t publicly available.

The potential proceeds will both finance capex spending and, possibly, green projects,the company’s website says.

ADVISORS- The company has appointed Standard Chartered Bank, HSBC Bank, SMBC Nikko Capital Markets, MUFG EMEA, Mizuho International, JP Morgan Securities, Al Rajhi Capital, First Abu Dhabi Bank, Mashreq Bank, Dubai Islamic Bank, KFH Capital Investment and Bank of China as joint managers for the potential offering.

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