Saudi Electricity Company successfully closed first international Sukuk with USD 1.75 billion issuance arranged by Deutsche Bank and HSBC

Riyadh - 24 April 2012

Saudi Electricity Company (“SEC”) rated A1/AA-/AA- (all Stable) the largest utility in the Middle East has announced the successful closure of a USD 1.75 billion dual-tranche Sukuk issue, comprising a USD 500 million with a five year maturity and a USD 1.25 billion with a 10 year maturity. This transaction led by Deutsche Bank and HSBC is the inaugural international Sukuk issuance by SEC and the largest international debt capital markets issuance from Saudi Arabia.

The deal was concluded after a comprehensive roadshow covering key centers in Asia, the Middle East and Europe. The dual-tranche Sukuk transaction was extremely well received globally and generated a large order book with over 440 investors placing orders in excess of US$ 17.5bn.

On this occasion, the Chief Executive Officer of SEC - Mr. Ali Al Barrak commented “The Sukuk issue is important to us for strengthening our funding mix, accessing longer-tenor financing, broadening our investor base and helping us become more in line with our global peers while supporting SEC’s capital expenditure requirements. We are very pleased with the results of our Sukuk issuance and feel that the large orderbook is a positive reflection of the market’s confidence in both Saudi Arabia and SEC.”

Jamal Al Kishi, CEO of Deutsche Securities Saudi Arabia LLC a subsidiary of Deutsche Bank Group said: “We are delighted to have led this debut international capital markets issuance for SEC. The issuance represents the largest international capital markets transaction by a Saudi Corporate. This Sukuk issuance objective is achieving a long tenor financing from a diversified investor base. We in Deutsche Bank Group are pleased that both these objectives have been successfully achieved. We are proud to have contributed to its financing success which we hope will support the Kingdom's growth at this important juncture."

Walid Khoury, CEO of HSBC Saudi Arabia Limited said: “We are proud to lead another successful Sukuk transaction for SEC, and that this deal now sets the benchmark for other Saudi issuers looking to access the international debt capital markets. He added “SEC took advantage of a positive market environment and was able to establish its yield curve in the international markets besides accessing longer dated financing”.

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