Saudi Electricity Company Secures $3.6 Billion in International Financing

RIYADH: The Saudi Electricity Company (SEC) has announced a significant milestone with the signing of a $3.6 billion international syndicated financing agreement. The financing, which is unsecured and spans a five-year term with an option for a two-year extension, involves a consortium of prominent global and regional banks, underscoring SEC's robust standing in the financial markets. According to Saudi Press Agency, the participating institutions in this landmark agreement include major banks such as the Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, Bank of Communications, and China Construction Bank. Other notable participants are KFW IPEX-Bank, State Bank of India, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Boubyan Bank, Dubai Islamic Bank, and Saudi Investment Bank. SEC Acting CEO Khaled Al-Ghamdi emphasized that the agreement is a strategic move to bolster the company's investment plans. The financing will be directed towards moderniz ing and expanding SEC's electric grid infrastructure, connecting renewable energy plants, and building battery storage systems. Al-Ghamdi highlighted that these initiatives aim to enhance service quality for customers and contribute to sustainable growth and increased shareholder value. Al-Ghamdi further articulated SEC's commitment to supporting a diverse and sustainable energy mix as part of Saudi Vision 2030. He stated that the company is dedicated to meeting the growing demand for electricity in the Kingdom, aligning with its economic progress. Additionally, SEC aims to enhance local content, promote industry localization, and contribute to the national economy. Expressing gratitude for the collaboration with leading international banks, Al-Ghamdi remarked on the favorable terms of the agreement as a testament to the confidence the global financial community has in SEC's vision and capabilities. He noted the productive partnerships SEC has developed with top-tier financial institutions worldwide.