Saudi Electricity Company Completes $2.4 Billion Sukuk Offer

Saudi Electricity Company Completes $2.4 Billion Sukuk Offer

Saudi Electricity Company (SEC) has successfully completed a $2.4 billion Sukuk issuance in US dollars, according to a statement filed on the Saudi stock exchange, Tadawul. The Sukuk was issued under SEC’s international Sukuk programme and was divided into three separate parts, also known as tranches.

The first tranche was worth $500 million. It has a fixed annual return of 4.31% and will mature in three years. The second tranche totalled $700 million and offers a fixed return of 4.518% per year with a maturity period of six years. The third and largest tranche was valued at $1.2 billion. It carries a fixed annual return of 5.065% and will mature after 10 years.

In terms of units, the first tranche included 2,000 Sukuk certificates, the second had 3,500 certificates, and the third consisted of 6,000 certificates. Each Sukuk certificate has a value of $200,000.

SEC stated that the Sukuk may be redeemed before the scheduled maturity date in certain situations, depending on the terms of the issuance. The Sukuk will be listed on the International Securities Market of the London Stock Exchange, which allows global investors to trade them.

The issuance was carried out through a special purpose vehicle and was offered to eligible investors both in Saudi Arabia and overseas.

Several major international and regional banks acted as joint lead managers for the transaction. These included JP Morgan, HSBC, Bank of America Securities, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank, Kuwait Finance House Capital, Standard Chartered Bank, Al Rajhi Capital, Alinma Capital, Bank of China, the Islamic Corporation for the Development of the Private Sector, Intesa Sanpaolo, Industrial and Commercial Bank of China, SMBC, and SNB Capital.

Saudi Electricity Company is the largest utility company in the Middle East. It is the main producer of electricity in Saudi Arabia and is also the sole owner of the country’s electricity transmission and distribution network.

On Sunday, SEC’s shares closed lower, falling by 0.57% to SAR 14 per share, which is around $3.73, as of 6:08 PM Arabia Standard Time.

Recent Agreements

In October, SEC signed power purchase agreements worth $3.4 billion (SAR 12.83 billion) with the Saudi Power Procurement Company (SPPC). These agreements are for two new combined-cycle gas turbine power plants located in Riyadh.

The two plants, known as Plant 13 and Plant 14, will have a combined electricity generation capacity of 3,356 megawatts. Each plant will produce 1,678 megawatts and will be fully owned by Saudi Electricity Company.

SEC said the financial impact of these agreements will be reflected over a 21-year period, starting from 2025.

Published: 19th January 2026

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