Samba and HSBC-led deal is expected to be more than $1.9bn
Saudi Electricity Company (SEC) has priced its next sukuk (Islamic bond) issue at 95 basis points above the Saudi interbank offered rate (Sibor), according to bankers in the country.
The deal is being issued locally and SEC is planning to raise up to SR7bn ($1.9bn).
The final size of the deal is expected to be decided by 10 May. Sources say the deal is already oversubscribed, especially given the liquidity in the Saudi banking system at the moment.
Several other local sukuk issues are also planned for this year, including two for the development of refineries being developed by Saudi Aramco at Jubail and Yanbu. However, issues with the Islamic structuring of the Jubail sukuk have held up the deal, while the recent decision by US oil company ConocoPhillips to walk out of the Yanbu project has also hit the financing plans for the project.
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