Record Saudi Utility Loss Fails to Interrupt Bond Rally - Bloomberg:
"The biggest quarterly loss in at least 10 years is failing to thwart a record rally in Saudi Electricity Co. (SECO) bonds as investors bet on lasting government support.
Yields on the utility’s sukuk due April 2024 dropped to 3.16 percent on Jan. 20, the lowest since they were sold, even after the state-owned power supplier posted a fourth-quarter loss of 1.8 billion riyals ($479 million). Two of Saudi Electricity’s Shariah-compliant bonds lead gains in the Gulf Cooperation Council this month, extending 2014’s top returns.
The performance reflects confidence that state backing for the Riyadh-based company will be sustained in the face of the lowest oil prices in almost six years. Saudi Arabia, the world’s largest oil exporter, has never issued dollar sukuk, making securities from the 81 percent state-owned utility a proxy for the sovereign."
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