The Saudi Electricity Company (SEC) yesterday announced that it is offering bonds to international investors with fixed incomes in the United States and European countries at a value of $ 2 billion. This is a first-ever step of its kind, coming at a time when a prominent company official stated the SEC is committed to paying the value of its stocks, bonds and interests on time. This follows a similar step the company made when it offered bonds on local financial markets to diversify its debt financial instruments to the international markets.
Abdul Salam Al Yamani, VP of public affairs, said the SEC has succeeded in gaining the confidence of international investors in new bonds. “The company is committed to paying the value of bonds and interest in the allotted time and it is because of the confidence of the international investors that the SEC is able to introduce the bonds in the American and European markets.”
In a statement on the official Tadawul website, the SEC stated: “...the company announces the finalyzing of international instruments with the total value of $ 2 billion, issued in two segments, the first for $ 1 billion maturing after 10 years, and the second for another $ 1 billion maturing after 30 years, paying returns of investment on each segment every 6 months.”
As of March 16, the company began holding meetings with fixed income investors from the United States and a number of European countries to explore the possibility of offering new debt instruments after obtaining the necessary approval of related regulatory bodies.
Deutche Bank and HSBC are administering the possible offer.
Ali Al-Barrak, SEC executive president, said in a press conference in Riyadh that there is no conflict between the Saudi Electricity Company and Aramco. After signing a scientific cooperation agreement with the French Alstom Company and King Abdullah University for Science and Technology, he pointed out: “What we have with Aramco is a difference in viewpoints only.”
Al-Barrak commented: “The SEC burns a number of fuels, like gas, raw and heavy oils used to operate the steam companies in the sea and this agreement improves the efficiency of this fuel and reduces the quantity of used fuels.”
The agreement will focus on studying the compounds of heavy oil and analyze the content of the synosphere (small vapors that accompany the burning of lower quality fuels).
