Saudi Electricity unveils framework for issuing green Sukuk

Saudi Electricity unveils framework for issuing green Sukuk

The Saudi Electricity Company published a document outlining the framework for issuing green Sukuk; in a move aimed at providing financial support for its projects through innovative and sustainable financing mechanisms.

The company stated that the portfolio of projects eligible for the inclusion in the framework of green Sukuk will be according to its contribution to improving energy efficiency; or in increasing renewable energy connected to the electrical grid; which in turn can contribute to various environmental and social benefits.

The SEC indicated that the smart meters and the renewable energy linking projects of the company are among the eligible projects. As these are in line with the mechanism because of their expected positive environmental impact. These projects seek to reduce greenhouse gas emissions and thus contribute to mitigating the negative effects of climate change.

Within the framework of its strategic plan supported by the Ministry of Energy; as well as the national committee for the clean development mechanism, the company focuses on creating value from its business; especially from its green portfolio of projects that positively contribute to supporting future national contributions.