Saudi Electricity Company Secures Over $4 Billion In Strategic Agreements At FII9 For Power Sector Efficiency

The Saudi Electricity Company (SEC) has entered into several strategic agreements with prominent financial and technology institutions, both locally and internationally. These agreements, valued at over $4 billion, were signed during the ninth Future Investment Initiative (FII9) in Riyadh. The aim is to boost the efficiency and sustainability of Saudi Arabia's power sector by diversifying funding sources and enhancing working capital efficiency.

SEC's collaboration with a consortium of global banks underscores international confidence in its financial stability. This $3 billion financing agreement includes major banks such as Abu Dhabi Commercial Bank, Barclays Bank, HSBC, and China Construction Bank. The deal will bolster SEC’s liquidity and expand its global financing base to support large-scale power projects across Saudi Arabia.

In addition to the international financing agreement, SEC has secured a $1 billion Export Credit Agency (ECA) framework agreement with Swiss Export Risk Insurance (SERV) and Standard Chartered Bank (SCB). This agreement focuses on ECA-backed financing to enhance Saudi and Swiss content in project execution while improving capital efficiency.

SEC is also advancing digital transformation through a new Supply Chain Financing (SCF) program. Partnering with "Manafa" Financing, a leading Saudi FinTech company, and "SAP Taulia," part of the SAP Group, this initiative aims to optimize working capital solutions. The program allows buyers to extend payment terms while enabling suppliers to receive early payments.

The SCF program was announced in collaboration with the Saudi Industrial Development Fund (SIDF), which acts as a primary financial enabler for the industrial sector's development in Saudi Arabia. The announcement ceremony was attended by SIDF CEO Prince Sultan bin Khalid bin Faisal, SEC CEO Eng. Khalid Alghamdi, Manafa CEO Abdulaziz Aladwani, and other senior executives.

These agreements collectively highlight SEC’s dedication to expanding international partnerships and adopting innovative financing solutions. By doing so, SEC aims to enhance its capacity for delivering major electricity projects that ensure service reliability and sustainability in line with Vision 2030.

The move aligns with Saudi Arabia's Vision 2030 development goals by reflecting global confidence in SEC’s pivotal role within the national power industry. It emphasizes SEC's commitment to supporting strategic electricity and infrastructure projects that strengthen service reliability across the Kingdom.

With inputs from SPA