Saudi's state utility completes $1.2bn sukuk offer

Saudi Electricity Co was last in the market in Jan last year when it issued a $2bn sukuk
Saudi's state utility completes $1.2bn sukuk offer
(Getty Images - for illustrative purposes only)
By Reuters
Fri 24 Jan 2014 10:47 AM

Saudi Electricity Co has completed a SR4.5 billion ($1.2 billion), 10-year floating-rate sukuk offer, pricing the deal at 70 basis points over the Saudi Interbank Offered Rate.

The state-owned firm said late last year that it would hold roadshows between December 31 and January 27, but wrapped up early after receiving enough orders to complete the deal.

Further details on the transaction are expected to be released by the kingdom's Capital Market Authorityin the near future.

The local deal was managed by Banque Saudi Fransi (Credit Agricole) and HSBC Saudi Arabia.

It is difficult to find comparables as there is no precedent in Saudi Arabia for floating-rate sukuk, a person close to the deal said. Based on Saibor, the absolute profit rate at issue is 1.69 percent.

SEC was last in the market in January 2013, when it issued a $2 billion dual-tranche sukuk, a follow-up to its 2012 debut in international markets.

It is planning a third US dollar bond issuance this year and is rumoured to have hired Deutsche Bank, HSBC and JP Morgan for an April launch.

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