KEY TAKEAWAYS
- Saudi Electricity Company has issued the
world’s first international 30-year
sukuk;
- More than six-and-a-half times oversubscribed,
the deal evidences strong international demand for
longer-dated Islamic instruments;
- Although the debut bond has opened new vistas for
Islamic finance, the number of companies eligible to take
advantage of the precedent is unclear;
- In the short term, it is likely that only
quasi-sovereigns will succeed in securing longer
tenors.
Saudi Electricity Company (SEC) has issued the
world’s first 30-year international
sukuk. The deal reveals new possibilities for Islamic
finance, opening the door for other companies to do similar
deals.
The benchmark $2 billion deal is SEC’s first
sukuk offered to US and other international investors in
accordance with Rule 144A. It consists of a 10-year series and
an unprecedented 30-year series, the longest tenor for a senior
unsecured sukuk issue to-date.
Charting a series of landmarks for the...