Massive demand for Saudi Electricity Cos (SEC) first international sukuk issue may prompt the company to include a rare long-dated tranche – and could encourage issues by other utility companies in the Gulf.
Since last week, roadshows held by SEC in Asia, the Middle East and Europe have underlined the fact that its sukuk has almost everything possible going for it: it is the first issue of dollar-denominated Saudi paper since 2010, and the debt is a sukuk, which means it will tap a pool of Islamic investors.
“”The prevailing tight yields as well as market liquidity, especially within the GCC, is a key reason for SEC to tap global debt markets,”" said Chanaka Dassanayaka, fund manager at Alistithmar Capital in Riyadh. “”The dollar-denominated issuance allows for more foreign participation, and given it is a key Saudi entity with a history of several successful local issuances, they can bargain for better terms with the market participants.
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