Saudi Electric has raised $2.4bn as it aims to improve its infrastructure through smart grid initiatives.

“The issuance further enables our growth ambitions, as we continue to invest in strengthening the grid infrastructure, integrating renewable energy sources, and accelerating smart gird and digitalisation initiatives,” said Khaled bin Salem Al-Ghamdi, chief executive officer of Saudi Electric.

Saudi Electricity (www.se.com.sa) raised the money under its international sukuk issuance programme. The sukuk was issued across three tranches comprising a $500m three-year tranche, a $700m six-year tranche and $1.2bn ten-year tranche. The transaction drew massive global interest, achieving peak demand of more than $10.1bn, representing a 4.2 times oversubscription.

“These investments will support our ongoing commitment to delivering high-quality, reliable electricity services while creating sustainable value for our customers and shareholders,” said Al-Ghamdi.

Following a high-engagement virtual global roadshow this month, the transaction was priced and executed. The issuance attracted a high-quality mix of institutional investors from Asia, Europe and the Middle East, reinforcing Saudi Electric’s position as a premier credit story in the global and regional energy sector.

“The overwhelming response to this issuance is a testament Saudi Electric’s continued ability to access international capital markets efficiently,” said Al-Ghamdi. “This success reflects our strong credit fundamentals, our pivotal role in the thriving Saudi economy, and our contribution to enabling the energy transition and advancing the objectives of Saudi Vision 2030.”

The success of the offering is underpinned by its robust investment-grade credit ratings: Aa3 (stable) by Moody’s, A+ (stable) by Fitch and A+ (stable) by S&P.