Saudi Electricity Company Signs $3.6 Billion Financing Agreement To Enhance Electric Grid Infrastructure

The Saudi Electricity Company (SEC) has secured a $3.6 billion international syndicated financing agreement, equivalent to SAR13.5 billion, with prominent global and regional banks. This financing is unsecured and spans five years, with an option to extend for two more years. The deal highlights SEC's strong credit standing and reliability in the global financial market.

Participating banks include the Industrial and Commercial Bank of China (ICBC), 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.

Khaled Al-Ghamdi, Acting CEO of SEC, emphasized the strategic importance of this financing. He stated that it supports their ambitious investment plans aimed at modernizing and expanding the electric grid infrastructure. The funds will also facilitate connecting renewable energy plants and building battery storage systems to enhance capacity and service quality.

Al-Ghamdi further explained that SEC is committed to playing a crucial role in enabling a diverse and sustainable energy mix within Saudi Arabia’s grid. This aligns with Saudi Vision 2030 and aims to meet the rapidly growing demand for electricity services as the Kingdom experiences dynamic economic growth.

The company remains dedicated to enhancing local content and fostering industry localisation. These efforts contribute significantly to enriching the national economy. Al-Ghamdi expressed gratitude for the strong interest shown by leading banks in partnering with SEC on this venture.

He remarked on the successful closure of this financing agreement under favourable terms as a reflection of global financial community confidence in SEC's vision and capabilities. "The successful closure of this financing agreement under favorable terms reflects the confidence of the global financial community in our vision and capabilities," he said.

Building Strong Partnerships

This agreement also underscores SEC’s long-standing productive partnerships with top-tier financial institutions worldwide. Al-Ghamdi highlighted these relationships as key to securing such significant financing deals that support their strategic goals.

The initiative is expected to drive sustainable growth prospects while boosting shareholder value. It demonstrates SEC's commitment to advancing its infrastructure projects and enhancing service delivery across Saudi Arabia.

With inputs from SPA