The Saudi Electricity Company (SEC) has signed a $3 billion international syndicated facility agreement with four leading regional banks - Dubai Islamic Bank PJSC, Kuwait Finance House, Mashreq Bank and Saudi National Bank.

 

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, said a statement from the company. 

 

Announcing the deal, CEO Engineer Khaled Al-Gnoon said: "The financing comes in line with our ambitious investment strategy aimed at injecting approximately SAR500 billion 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."

 

"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," he stated. 

 

"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," he added.

 

According to him, SEC's key objective was to create a diversified portfolio, encompassing continuing to invest in energy production and progress in the liquid displacement programme, 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," explained Al Gnoon.

 

In another development, SEC said it has secured the go-ahead from Saudi Power Procurement Company (SPPC) to begin the execution of expansion of Rabigh Power Plant by adding 1.2 GW combined-cycle units.

 

SPCC said this comes as part of it mandate to continuously evaluate expansions and upgrades opportunities of existing projects to enhance generation capacity, meet electrical system needs, and ensure reliability of power supply. 

 

"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," added Al-Gnoon.-TradeArabia News Service