Saudi Electricity Company (SEC) has begun talks with investors in the US and Europe ahead of a potential sukuk issuance.

Germany’s Deutsche Bank, UK’s HSBC and US’ JP Morgan have been selected to arrange the Islamic bond.

The talks began on 25 March and the bond will be issued depending on favourable market conditions and regulatory approvals, SEC said in a filing to the Saudi bourse.

The dollar-denominated issuance follows the company’s earlier local currency sukuk which was launched in January.

International rating agencies have already provided expected ratings for the issuance. US-based Fitch gave the international bond a long-term issuer default rating of AA- with a stable outlook.

Similarly the US agency Standard & Poor’s assigned a AA- issue rating for the sukuk.

SEC is in the process of tendering for a number of power projects this year, including a new independent power project (IPP) known as Duba 1. The deal is still in the early stages of procurement.