In a preparatory step towards obtaining a new innovative and sustainable financing for its capital projects, the Saudi Electricity Company (SEC) today released its Green Sukuk framework. The company said in a statement that a portfolio of eligible projects are qualified under its Green Sukuk framework based on each project's contribution to energy efficiency and renewable energy. The qualification is linked to delivering various environmental and social benefits. The Smart Metering Project and renewable energy integration, the company said, are qualified for the portfolio thanks to their projected positive environmental benefits of reducing greenhouse emissions and contributing to mitigate climate change. In line with SEC's strategic direction, which is supported by Ministry of Energy and National Committee of Clean Development Mechanism, SEC's seeks to create market value from its operations, especially, its green projects which contributes positively to KSA's intended nationally determined contributions to the United Nations Framework Convention on Climate Change and to achieve the objectives of sustainable development under the guidelines of Vision 2030. These include reasonably priced clean energy, renewable energy integration into the grid up to 27.6 gigawatts by 2025, and an innovative digitalized and automated infrastructure supported by 10 million smart meters. The company expects to invest as much as 9.56 billion Saudi riyals in these projects. The Green Sukuk framework, the company said, has been prepared in accordance with the principles of green bonds issued by the International Capital Market Association, with independent review by Vigeo Eiris, an outside specialist in Environmental, Social, and Governance practices, which gave it a rating of "reasonable assurance," its highest possible rating. The rating reinforces the company's ability to integrate its ESG practices into its strategy and work them into its business.
