Saudi Electricity Company (SEC) plans to issue green dollar bond and is seeking potential investors in different markets for the development, media reports said.
Saudi Electricity Company, told the media, “The potential offering of the green sukuk will be limited to qualified investors in the jurisdictions in which the offering will be made in accordance with the rules and regulations of such jurisdictions.
However, it has yet to be confirmed how much the issuance amount will be. “[The] amount is subject to market conditions and SEC’s requirements.”
It is reported that the state-controlled company will look for potential investors based in the Middle East, Europe and Asia from this month as it will also plan to float Sukuk offering. The green bonds will be limited to few investors and jurisdiction and will be used to carryout cleantech projects for a greener future.
According to the company’s Green Sukuk Framework (GSF), the green bonds will be used to finance green capital projects. HSBC and MUFG have been chosen as green structuring advisors for the development.
Furthermore, these banks will be serving as joint managers in the new development: Standard Chartered Bank, HSBC, JP Morgan, MUFG and First Abu Dhabi Bank. In addition, these banks are assigned to arrange a series of fixed income investor calls in Asia, Europe and the Middle East from this week.
The company signed a 2.4 billion syndicated Islamic loan with local banks last month. The move by SEC reflects its ambitions towards carbon neutrality in the Kingdom of Saudi Arabia.