SEC achieves sukuk rollover transaction

Saudi Electricity Company (SEC) has announced the results of a special meeting of the holders of the Saudi Electricity Sukuk 3.
Saleh Al-Awajji, SEC chairman chaired the meeting at the company’s head office in Riyadh.
The company will purchase SR1,269 million in aggregate nominal value of sukuk (equivalent to 18.13 percent of the aggregate nominal value of the sukuk as on May 10). The new purchase date occurring in May 2022 has been added in respect of the remainder of the sukuk.
Ziad Al-Shiha, CEO of SEC, said: “The company’s success in achieving the first sukuk rollover in the Saudi local sukuk market affirms its pioneer role as the largest Islamic sukuk issuer from the Saudi business sector.”
He said that the rollover of the sukuk instead of issuing a new one is sensible for both the company and the sukuk holders. It provides advantages when compared to a new issuance in terms of an expedited timeline and simplified documentation.
Al-Shiha added: “The SEC has a large portfolio of projects under development, and it follows a diversified and balanced financing strategy to meet the investment requirements in these projects in addition to the financing dues at the same time.
He said: “I am happy with the majority of sukuk holders who decided to retain their investment in this high-rated credit instrument as a gesture of confidence in the company, its business model, its board of directors and its executive management.”
The company has plans to visit China in the coming days to meet with Chinese companies and banks to discuss cooperation and financing opportunities. The SEC is looking forward to expanding its partnership with Chinese companies in its projects while undertaking mega investments.
This is part of the company’s plan to expand its financiers and investor base in China.

Source: Arab News