The Saudi Electricity Company (SEC) has announced the signing of a $3bn (SR11.25bn) international syndicated facility agreement with four leading banks in the region.
This landmark signing occurred amid Riyadh’s prominent global economic event, the Future Investment Initiative.
The financing agreement has a tenure of five years and requires no guarantees from the SEC.
Saudi Electricity Company
Participating banks include Dubai Islamic Bank PJSC, Kuwait Finance House, Mashreq Bank PSC, and Saudi National Bank.
CEO of SEC Khaled Al Gnoon said: “The financing comes in line with our ambitious investment strategy aimed at injecting approximately SR500bn in our expansion plans in the electricity sector, and CapEx spend by 2030 to provide exceptional electricity services to subscribers, this as well as boosting the growth of the company’s regulated asset base, a move anticipated to fortify its financial position and prospects for revenue growth.”
Al Gnoon added: “Our investments primarily focus on building smart grids, integrating renewable energy projects, and improving the grid reliability, altogether will provide the essential infrastructure for the transmission and distribution grids to further boost electricity generation efficiency levels and achieve optimal electricity production, in line with the goals of Vision 2030.
“Furthermore, these investments translate into a myriad of environmental and societal co-benefits, affirming the designation of many of these investments as green and eco-friendly ventures.
“Our objective is to create a diversified portfolio, encompassing continuing to invest in energy production and progress in the liquid displacement program, in alignment with the Kingdom’s ambitious energy transition plans.
“We continue to further leverage the company’s multi-decade expertise in the electricity sector and its substantial asset base to unlock additional growth opportunities from new business segments, such as fibre optics telecom and ICT services, energy services and solutions, and the provision of the necessary infrastructure for electric vehicles, among others.”
The company’s robust financial profile and well-balanced capital structure, supported by favourable regulatory and financial reforms implemented in the electricity sector, optimally position it to successfully fund future growth plans and enhance returns for its shareholders in Saudi Arabia, added Al Gnoon.
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