Saudi Electricity Co recently repaid a $500 million five-year sukuk it issued in 2012. (File photo: Reuters)
State-controlled utility Saudi Electricity Co is in talks with regional and international banks about issuing a US dollar-denominated sukuk, banking sources said on Monday.
The company is close to appointing banks to arrange the transaction which, according to one of the sources, is likely to exceed $1 billion.
A company spokesman did not respond to a request for comment.
A number of companies in the kingdom are considering replenishing their coffers through domestic and international bonds to offset a decline in revenues due to lower oil prices.
Also read: Saudi Aramco raises $3 bln with debut sukuk - sources
Oil giant Saudi Aramco issued a debut $3 billion-equivalent sukuk in the Saudi local market in April, while ACWA Power, another Saudi utility, is expected to issue an international bond of at least $600 million this week, bankers said.
Saudi Electricity issued $2.5 billion in sukuk in 2014, split between a $1.5 billion sukuk maturing in 2024 and $1 billion due in 2044. Deutsche Bank, HSBC and JP Morgan were the lead banks on that deal.
The company recently repaid a $500 million five-year sukuk it issued in 2012.
