SEC Appoints Banks for Sukuk Issue
April 15, 2010 – Saudi Electricity Company (SEC) has appointed Samba Capital and the U.K.’s HSBC to lead a sukuk issue of up to $1.9 billion (SR7 billion), which is expected to be launched in May. Proceeds from the sukuk will be used for SEC’s expansion plans. SEC is executing projects to add 5,105 megawatts of new power capacity by 2012 and plans to buy electricity from an independent consortium that is developing a power and desalination plant with an output capacity of 850 megawatts. The sukuk deal will be SEC’s third locally targeted sukuk issue after it raised $1.9 billion (SR7 billion) in 2007 and also in 2009. Other recent issues include Banque Saudi Fransi’s international bond, which raised $650 million (SR2.4 billion) in late March, and Dar Al-Arkan’s $450 million (SR1.7 billion) sukuk issue in mid-February.