Latham & Watkins Advises on Saudi Electricity Company’s SAR4.5 Billion Saudi Public Sukuk

Firm advises on first public Saudi Sukuk issuance of 2014.

February 04, 2014

Latham & Watkins advised the Joint Lead Managers, HSBC Saudi Arabia Limited and Saudi Fransi Capital Company, on Saudi Electricity Company’s (SEC) issuance of SAR4.5 billion (US$1.2 billion) Sukuk Certificates.

The transaction represents the first public Saudi Sukuk issuance of 2014 and SEC’s first public Sukuk issuance in the Kingdom of Saudi Arabia in three years. In 2012 and 2013 SEC successfully issued US$3.75 billion 144A and Reg S Sukuk Certificates in the international markets, including the first international 30 year Sukuk by any issuer. 

This stand-out Sukuk further indicates the robustness of Saudi Arabia’s capital markets, demonstrating that issuing Sukuk is a viable alternative to raising bank loans as a means of accessing funding.

Partner Harj Rai, who led the transaction, commented: “We are proud to have advised the Joint Lead Managers in successfully completing SEC’s public Sukuk. This transaction reinforces Latham’s leadership in debt capital markets in the region as Middle East corporates increasingly turn to Sukuk to diversify their funding sources.”

The Latham & Watkins team spanned the firm’s Dubai and Riyadh offices and was led by partners Harj Rai and Salman Al-Sudairi, with associates Lee Irvine and Megren Al-Shaalan.

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