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Latham and the Law Office of Salman M. Al-Sudairi Advise on Saudi Electricity Company’s Inaugural US$1.3 Billion Green Sukuk

September 20, 2020
Landmark transaction represents the first green Sukuk issuance by a Saudi corporate.

Latham & Watkins and the Law Office of Salman M. Al-Sudairi advised the joint lead managers and the delegate in connection with the inaugural green Sukuk issuance by Saudi Electricity Company (SEC). The landmark transaction, which was heavily oversubscribed, represents the first ever green Sukuk issuance by a Saudi corporate. The issuance comprised two tranches of US$650 million Green Certificates due 2025 and US$650 million Green Certificates due 2030.

The proceeds of the issuance will be used to finance SEC’s “smart meter” rollout programme, supporting SEC’s sustainability strategy and facilitating the Kingdom’s transition to a low carbon economy, in line with the objectives of the Kingdom’s Vision 2030. 

First Abu Dhabi Bank, HSBC, J.P. Morgan, MUFG, and Standard Chartered Bank acted as joint lead managers for the issuance, and HSBC was appointed as delegate in respect of the Certificates. The Certificates, which were issued through an offshore special purpose vehicle incorporated in the Cayman Islands, were admitted to trading on the regulated market of Euronext Dublin and have been rated A2 by Moody’s and A- by Fitch. The Certificates were offered to investors outside the United States pursuant to Regulation S under the US Securities Act of 1933, as amended. 

The Latham team was led by Dubai partners Nomaan Raja and Harj Rai, and counsel Basil Al-Jafari. London capital markets partner Lene Malthasen, and associate Amina Tsatiashvili advised the delegate. 

The Law Office of Salman M. Al-Sudairi team was led by principal Salman Al-Sudairi with assistance from counsel Amar Meher and associates Najla Al-Gadi and Mashal Al-Assaf.