Arab News, Thursday, Sep 10, 2020 | Muharram 22, 1442
Saudi Electricity mulls green bond sale amid Arab debt push
Saudi Arabia: Saudi Electricity plans to hold investor calls
this week ahead of a potential green Islamic bond sale.
The utility is among a number of regional corporations and governments seeking
to tap international debt markets to raise funds.
It follows publication of its Green Sukuk Framework (GSF) aimed at mitigating
climate change.
It has appointed HSBC and MUFG as green structuring advisors with First Abu
Dhabi Bank, J.P. Morgan and Standard Chartered Bank among the joint lead
managers, according a statement to the Tadawul.
A flurry of debt sales in recent weeks across the Gulf markets have drawn great
interest from international investors attracted by the strong ratings of many
regional issuers. Bahrain, Abu Dhabi and Dubai are among the sovereign sales
that have already been announced while several corporations have also gone to
the market as a low oil price and the coronavirus pandemic spur activity.
Saudi Electricity said it had identified a portfolio of eligible projects which
are qualified under its Green Sukuk and which are linked to delivering various
environmental and social benefits.
These include a smart metering project and renewable energy integration, the
company said.
The utility expects them to contribute positively to the country’s commitment to
the United Nations Framework Convention on Climate Change, as well as its own
sustainable development objectives contained in Saudi Vision 2030.
This calls for reasonably priced clean energy, renewable energy integration into
the grid of up to 27.6 gigawatts by 2025, and 10 million smart meters. The
company expects to invest as much as SR9.56 billion in these projects.