Latham & Watkins advised the Managers and the Delegate on the issuance of $1.5bn Certificates due 2024 and $1bn Certificates due 2044 by Saudi Electricity Company (SEC). The transaction represents the second sukuk issuance for SEC in 2014, with the company having successfully raised SR4.5bn through a public sukuk issuance in the Kingdom of Saudi Arabia in January 2014. Latham advised the Joint Lead Managers on this transaction.
Deutsche Bank AG, London Branch, HSBC Bank plc and J.P. Morgan Securities plc acted as the Joint Lead Managers, with Mizuho Securities Co., Ltd. acting as a Co-Manager and HSBC Corporate Trustee Company (UK) Limited acting as the Delegate. The sukuk was issued by Saudi Electricity Global Sukuk Company 3, a special purpose vehicle incorporated in the Cayman Islands and utilised an Ijara structure, a structure that was also successfully used in the international 30 year sukuk issuance by SEC in 2013, which represented the world’s first international 30 year sukuk issuance. The sukuk was offered to investors in the United States pursuant to Rule 144A of the US Securities Act of 1933, as amended.
The Latham & Watkins team spanned the firm’s Dubai, Riyadh, London and New York offices and was led by partners Harj Rai, Nomaan Raja and Lene Malthasen, with associates Lee Irvine, Muhannad Alnajjab, Ibrahim Soumrany and Theo Kalic.
Partner and co-lead Harj Rai said: “The success and volume of interest shown by global investors in the 30 year international sukuk of SEC demonstrates the increasing demand of the sukuk product in the United States.” Partner and co-lead Nomaan Raja added: “This third hugely successful international sukuk issuance by SEC clearly demonstrates the confidence of international investors in SEC’s financial strength and strategic importance within the Kingdom of Saudi Arabia.”