Fitch stable outlook for $1.9bn SEC sukuk
Riyadh, July 5, 2009
Fitch Ratings has assigned the Saudi Electricity Company's (SEC) SR7 billion ($1.9 billion) Sukuk issue a final 'AA-' rating with stable outlook.
This follows the receipt of final documentation with terms and conditions conforming materially to information already received.
The structure for the Sukuk is similar to SEC's 2007 SR5 billion Sukuk, which is also rated 'AA-'. The transaction involves the transfer by SEC of sukuk assets to a custodian, Sukuk Electricity Company, a wholly-owned subsidiary of SEC, according to a Fitch statement.
The sukuk assets comprise of rights to provide service connections and the entitlement to levy and receive a one-time charge for each connection.
The Sukuk is issued on an unsecured and unsubordinated basis and has an effective maturity of July 6, 2014, the statement said.
Sukuk holders are entitled to a quarterly periodic distribution amount and can require the issuer to purchase their Sukuk after 5, 10, 15 and 20 years and also following an event of default.
If the option is exercised after five years, Sukuk holders are entitled to 100 per cent of the face value of the Sukuk. The face value percentage reduces to 80, 60 and 40 per cent if the option is exercised after 10, 15 and 20 years respectively, the statement added.-TradeArabia News Service