Clifford Chance Guides SEC in US$2.2 Billion Sukuk Issuance
Clifford Chance, a global law firm, has guided Saudi Electricity Company (“SEC”) through the dual-Series international issuance of US$800 million and US$1.4 billion senior unsecured trust certificates due 2029 and 2034 respectively. These certificates, known collectively as the Sukuk, were issued by Saudi Electricity Sukuk Programme Company as trustee under SEC’s US$6 billion Trust Certificate Issuance Programme. The Sukuk, compliant with Regulation S of the U.S. Securities Act of 1933, are listed on the main market of the London Stock Exchange plc.
As the top producer of electricity in the Kingdom of Saudi Arabia (KSA) and the sole provider of electric power transmission and distribution in the region, SEC holds a significant role. With 81.1% of SEC’s shares held by the Public Investment Fund and Saudi Aramco, and the rest publicly traded on Tadawul, the company maintains strong ratings from Moody’s, Fitch, and S&P.
The successful issuance, with a 5-year Sukuk priced at a profit rate of 4.942% and a 10-year Sukuk at 5.194%, marks one of the largest in the MENA region in over a year. Demand from international investors in Asia, Europe, and the Middle East surpassed US$11 billion, resulting in over five times oversubscription.
The cross-border team comprised partner and Head of Middle East Capital Markets, Stuart Ure (Dubai), Nader Koudsi (Senior Associate, Dubai, pictured right) and Benedetta Tola (Associate, Dubai) at Clifford Chance, with support from Head of Banking and Finance Yasser Al-Hussain (Riyadh, pictured left), Ibrahim Al-Mansour (Associate, Riyadh) and Yara Abushanan (Associate, Riyadh) at AS&H Clifford Chance.
Al Rajhi Capital Company, Bank of China Limited – London Branch, Dubai Islamic Bank, First Abu Dhabi Bank PJSC, HSBC Bank, J.P. Morgan Securities, KFH Capital Investment Company, Mashreqbank (acting through its Islamic Banking Division), Mizuho International, MUFG Securities EMEA, SMBC Nikko Capital Markets Limited, and Standard Chartered Bank served as Joint Lead Managers on the issuance.
