Saudi Electricity Company (SEC), the electric transmission monopoly of the Kingdom of Sauri Arabia (KSA), has sold USD 1.3 billion in dual-tranche green sukuk, or Islamic bonds, marking not only the first public green issuance from the region this year but also KSA’s entry into the Green Finance Agenda.
The Sukuk was issued under the company’s recently released Green Sukuk Framework (GSF), prepared in accordance with the International Capital Market Association (ICMA) Green Bond Principles and in alignment with EU taxonomy regulation environmental objectives regarding mitigating climate change. These are based on five pillars, including Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds, Reporting and External Review.
The deal, which included USD 650 million in a five-year tranche at 140 basis points over midswaps and USD 650 million in 10-year Islamic bonds at 170 basis points over midswaps, was one of only a handful of green sukuk ever issued from the Gulf.
