Home / NEWS / Saudi Electric Co places $1.75 billion loan deal

Saudi Electric Co places $1.75 billion loan deal

by Daniel Canty on Apr 1, 2012

SEC's PP9 power plant just outside of Riyadh.
SEC's PP9 power plant just outside of Riyadh.

Saudi Electricity Company has announced the successfully completion of the pricing and allocations for a total sukuk issuance of US$1,750 million.

The Islamic Finance compliant loan is formed of  two separate sukuk certificates; a $500 million 5-year series and $1,250 million 10-year series priced at 2.665% and 4.211%, respectively, with profit payments payable on a semi-annual basis starting 2012.

The sukuk has been allocated primarily with investors across Europe, Middle East and Asia and will only be offered in the kingdom of Saudi Arabia by way of private placement, according to an SEC statement.

In its statement to the Saudi Arabian stock exchange (Tadawul) the company also said the sukuk was well received from all markets and generated a large order book with orders in excess of $17,500 million.

According to Bloomberg the successful loan partners were HSBC Holdings, Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corp, and Mizuho Corporate Bank. The newswire also revealed that the Export-Import Bank of Korea also provided financing for the loan.



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