Allen & Overy LLP, in association with leading local law firm Zeyad S. Khoshaim Law Firm, has advised Saudi Electricity Company (SEC), the Gulf's largest utility company, on its record breaking USD2.5 billion sukuk, the largest ever Rule 144A sukuk offering.

The sukuk consists of two separate series of sukuk certificates: a USD1.5bn 10-year series and a USD1bn 30-year series priced at 4.00% and 5.50% respectively, with profit payments payable on a semi-annual basis. Deutsche Bank, HSBC and J.P. Morgan are the lead managers and bookrunners on the sukuk.

The deal builds on the success of last year’s landmark USD2 billion sukuk which was the first to be offered to US and other international investors under Rule 144A.

Commenting on the deal, partner and head of Allen & Overy's European Islamic finance practice Atif Hanif said: "Given the interest in last year’s landmark offering it is no surprise that investor demand has once again been strong for this follow up issue. This underlines the international investment communities growing familiarity and comfort with Islamic products."

The Allen & Overy team was led by London-based partners Atif Hanif, Sachin Davé and Jamie Durham, assisted by senior associate Cieren Leigh and associates, Tracy Tong, Anne Korenblit and Edana Richardson. The Riyadh-based team comprised partner Zeyad Khoshaim and associate Hosam Ghaith.