The Saudi Electricity Company (SEC) has achieved a financial milestone by securing a substantial Islamic credit facility amounting to $1 billion from the Saudi National Bank, which is recognized as the largest bank in terms of assets within the Kingdom.
This financial arrangement, structured as a bilateral Murabaha loan and finalized on May 7, 2024, is set to bolster the utility provider’s general corporate needs as well as its capital expenditure plans, as disclosed in an official announcement on the Saudi stock exchange.
The financing agreement spans a period of five years and includes a provision that allows for a potential extension of an additional two years.
In related news, SEC has also made headway in securing the financial underpinnings for its Taiba 1 and Qassim 1 independent power plant projects. The company has successfully arranged non-recourse financing that totals SAR 11.4 billion.