The Saudi Electricity Company (SEC) signed a $3.6 billion (SAR 13.5 billion) international syndicated financing agreement with a group of global and regional banks. The participating financial institutions include the Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, Bank of Communications, China Construction Bank, 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.
The financing is unsecured, with a five-year term and an option to extend for two additional years.
“This agreement is not just a mere financing transaction; it represents a key strategic step supporting our ambitious investment strategy,” said SEC Acting CEO Khaled Al-Ghamdi. “The financing will support our initiatives to modernize and expand our electric grid infrastructure, connect renewable energy plants, build battery storage systems, enhance their capacities, and provide high-quality services to customers. This ultimately is expected to drive sustainable growth prospects while boosting shareholder value.”
“At SEC, we are fully committed to our pivotal role in enabling a diverse and sustainable energy mix within the Kingdom’s grid, in alignment with Saudi Vision 2030,” Al-Ghamdi added. “This is alongside our mandate to meet the fast-growing demand for electricity services, keeping pace with the Kingdom’s dynamic economic progress. Furthermore, we remain steadfast in our dedication to enhancing local content, fostering industry localization, and contributing to the enrichment of the national economy.”
Al-Ghamdi also acknowledged the participation of the financial institutions, stating, “The successful closure of this financing agreement under favorable terms reflects the confidence of the global financial community in our vision and capabilities. It also highlights the long-standing, productive partnerships we have cultivated with top-tier financial institutions worldwide.”
