Orders for the 10-year tranche topped $9.2 billion and the 30-year tranche drew more than $6.2 billion in demand, both excluding interest from joint lead managers, the document said. The kingdom's electric transmission monopoly launched $1.2 billion in 10-year green sukuk at a spread of 120 basis points (bps) over U.S. Treasuries and $800 million in 30-year conventional sukuk at 205 bps over UST. The spreads were tightened after higher-than-expected demand of $15.4 billion for both tranches. Initial guidance was for a spread of around 165 bps over UST for the 10-year notes and around 240 bps over the same benchmark for the 30-year Islamic bonds. The huge demand was due to investors looking to buy sukuk, a market that has long had a supply-demand imbalance, as well as a relative dearth of corporate issues from the Gulf region that is benefiting from high oil prices, a person familiar with the matter said. The demand was "not entirely regionally-focused, it was actually quite widespread," the person said, adding Saudi Electricity had not issued bonds in over two years. Saudi Arabia's Al Rajhi Bank, the world's biggest Islamic bank, sold $1 billion in five-year sustainable sukuk last week. HSBC, JPMorgan and Standard Chartered are joint global coordinators for Saudi Electricity's sukuk sale. (Reporting by Yousef Saba, Editing by Louise Heavens, Paul Simao and Sharon Singleton)
(Updates with final spread, demand update)
DUBAI, April 3 (Reuters) - Saudi Electricity Company , majority owned by the sovereign Public Investment
Fund, is set to raise $2 billion from a sale of dual-tranche
Islamic bonds, a bank document on the deal showed on Monday.
The company's offer is made up of 10-year green sukuk and
30-year conventional Islamic paper, the document showed.
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