Saudi Electricity Co. Prices USD Sukuk Amid Strong Investor Demand
The state-owned utility company Saudi Electricity Co. (SEC) has successfully priced its Regulation S senior unsecured USD dual-tranche sukuk, drawing significant interest from investors.
The five-year sukuk has a 5.225% profit rate and was priced at Treasuries + 85 basis points (bps). A 5.489% profit rate was provided by the 10-year green sukuk, which was priced at UST + 95 bps.
With order books exceeding $6.1 billion for the five-year sukuk (excluding joint lead manager interest) and $5.5 billion for the 10-year green sukuk (excluding JLM interest), the offering was clearly well-received by investors.
This successful issuance reflects SEC’s strong market position, investor confidence in Saudi Arabia’s utilities sector, and the growing demand for Sharia-compliant investment instruments. The green sukuk segment also underscores Saudi Arabia’s ongoing commitment to sustainable financing and environmentally friendly projects.