Saudi Electric taps into potential dollar bonds
Banks invited for bond mandate as SEC considers international issue
Banks have been invited for a potential bond mandate by Saudi Electricity Co, reported IFR Markets, a unit of Thompson Reuters, after last year’s announcement that the company could tap international debt markets in 2011.
In May, a senior executive said the company was considering its first international bond issue, in the form of an Islamic issue, or sukuk. Having so far only issued domestic sukuk, Saudi Electricity Co has sent a request for proposals to a select number of local banks and international institutions with operations in Saudi Arabia, with replies due at the end of this month, IFR said.
With plans to invest US$80 billion to boost capacity to at least 70,000MW by 2020, Saudi Electric Co. is hoping to meet domestic demand which is rising at 8% annually.