Saudi Electric to buy back 5 bln riyal sukuk

DUBAI, June 17 Sun Jun 17, 2012 5:23am EDT

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DUBAI, June 17 (Reuters) - Saudi Electricity Co (SEC) said on Sunday it would buy back its 5 billion riyal ($1.3 billion) debut sukuk issued in 2007, in accordance with the terms of that issue.

The sukuk is due to expire in 2027 but under the terms, SEC must offer to repurchase it every five years, at a price which decreases over time.

The paper will no longer trade on the Saudi stock exchange from June 17, and payments will be made to bondholders by July 15, SEC said. (Writing by Joseph Logan; Editing by Andrew Torchia)