Saudi Electricity Co to sign $4bn syndicated loan
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Saudi Electricity Co to sign $4bn syndicated loan

Saudi Electricity Co to sign $4bn syndicated loan

The firm is the main electricity producer in Saudi with an 81.2 per cent indirect government ownership

Reuters

State-controlled Saudi Electricity Co said it will sign on Wednesday a SAR15.2bn ($4.05bn) Islamic syndicated loan provided by a group of local banks.

The loan has a murabaha structure, a cost-plus-profit arrangement which complies with Islamic finance standards, and will be used for general corporate purposes, including capital expenditure, the company said in a statement.

The firm, the main electricity producer in Saudi Arabia with an 81.2 per cent indirect government ownership, is a frequent borrower in the domestic and international debt capital markets.

In November, it secured $2.15bn in syndicated revolving credit facilities, which followed another $2bn raised through sukuk, or Islamic bonds, in September.

The new financing, with a seven-year maturity, will be provided by a group of domestic banks comprising Al Rajhi Bank, National Commercial Bank, Saudi British Bank, Banque Saudi Fransi, Samba Financial Group and Arab National Bank, the company said.


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