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SEC secures $3bn financing from 4 banks; deal signed during FII7

SEC secures $3bn financing from 4 banks; deal signed during FII7
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Riyadh – Mubasher: Saudi Electricity Company(SEC) inked a USD-denominated international syndicated facility agreement at a total value of $3 billion, equivalent to SAR 11.25 billion, during the proceedings of the global economic event, the Future Investment Initiative in its seventh edition (FII7).

The company will secure the financing from Kuwait Finance HouseMashreq Bankthe Saudi National Bank (SNB), and Dubai Islamic Bank (DIB).

SEC will use the proceeds of the facility, which holds a tenor of five years, to boost its expansion plans and capital investments in the electricity industry.

Khaled Al Gnoon, CEO of SEC: commented: "The financing comes in line with our ambitious investment strategy aimed at injecting approximately SAR 500 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. ”

Al Gnoon added: "Our investments primarily focus on building smart grids, integrating renewable energy projects, and improving the gird 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,” the CEO noted.

He underlined: “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.”

It is worth highlighting that SEC is participating in the panel sessions and key themes in the FII7 event, which is held in Riyadh on 24-26 October 2023.