Saudi Electricity Company Secures $3.6 Billion International Financing Deal

The Saudi Electricity Company (SEC) has secured a $3.6 billion international syndicated loan (13.5 billion SAR) from a group of prominent global and regional banks. The lenders include 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. The loan is unsecured, has a five-year term, and offers an option to extend for two additional years. This arrangement highlights SEC’s solid credit reputation and the strong confidence it commands in international financial markets.

Khaled Al-Ghamdi, CEO of SEC, said “This agreement is not just a mere financing transaction; it represents a key strategic step supporting our ambitious investment strategy. The financing will support our initiatives to modernize and expand our electric gird infrastructure, connect renewable energy plants, build battery storage systems and enhance its capacities as well as providing high quality services for customers. This ultimately is expected to drive sustainable growth prospects while boosting shareholders’ value.”

He further continued, “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. This along with our mandate to meet the fast-growing demand for electricity services that keep pace with the Kingdom’s dynamic economic progress. Furthermore, we remain steadfast in our dedication to enhancing local content and fostering industry localization while contributing to enriching the national economy.”

Al-Ghamdi expressed his appreciation for the significant interest from top banks in partnering with SEC, 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 around the world.”