By Mary-Katherine Stinson
Lexington, Ky., April 4 – Saudi Electricity Co. with Saudi Electricity Sukuk Programme Co. listed as issuer, issued a $2 billion two-part sukuk offering, one part green, according to an announcement and a stabilization notice.
The company sold a $1.2 billion 4.632% green sukuk with a 10-year tenor at par, or at a spread of 120 bps over Treasuries, representing 45 bps tightening from initial price talk.
The company also sold an $800 million 5.6% sukuk with a 30-year tenor at par, or at a spread of 205 basis points over Treasuries, representing a 35 bps tightening from initial price talk.
The notice stated that pricing of the deal is in line with the pricing of the Saudi Arabian government's sovereign sukuk.
The company announced its intention to hold fixed-income investor meetings on March 30 for the Regulation S notes. The order book opened on April 3 and closed the same day with a total order book value of $15.4 billion, being oversubscribed by about 7.7x for both tranches.
Over 350 investors participated in the order book, including local and international financial institutions from more than 27 countries in Asia, Europe and the Middle East.
HSBC Bank plc, Standard Chartered Bank, J.P. Morgan Securities plc, First Abu Dhabi Bank, MUFG Securities EMEA plc, Mizuho International plc, SMBC Nikko Capital Markets Ltd., SNB Capital, Al Rajhi Capital, Saudi Fransi Capital, Abu Dhabi Islamic Bank, Bank of China, PJSC, Abu Dhabi Commercial Bank, Natixis and Societe Generale were the joint lead managers.
Proceeds will be used for general corporate purposes, including capital expenditures. The green offering will be used to fund a portfolio of eligible green projects as set out in the company’s green framework.
The issuer is a majority state-owned electricity company.
| Issuer: | Saudi Electricity Sukuk Programme Co.
|
| Amount: | $2 billion
|
| Joint lead managers: | HSBC Bank plc, Standard Chartered Bank, J.P. Morgan Securities plc, First Abu Dhabi Bank, MUFG Securities EMEA plc, Mizuho International plc, SMBC Nikko Capital Markets Ltd., SNB Capital, Al Rajhi Capital, Saudi Fransi Capital, Abu Dhabi Islamic Bank, Bank of China, PJSC, Abu Dhabi Commercial Bank, Natixis and Societe Generale
|
| Distribution: | Regulation S
|
| Marketing: | Roadshow
|
|
|
| 10-year sukuk
|
| Amount: | $1.2 billion
|
| Issue: | Green sukuk
|
| Tenor: | 10 years
|
| Coupon: | 4.632%
|
| Price: | Par
|
| Yield: | 4.632%
|
| Spread: | Treasuries plus 120 bps
|
| Initial price talk: | Treasuries plus 165 bps
|
|
|
| 30-year sukuk
|
| Amount: | $800 million
|
| Issue: | Sukuk
|
| Tenor: | 30 years
|
| Coupon: | 5.6%
|
| Price: | Par
|
| Yield: | 5.6%
|
| Spread: | Treasuries plus 205 bps
|
| Initial price talk: | Treasuries plus 240 bps
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
