Saudi Electricity in deal to reclassify net government liabilities

SourceTrade Arabia
SectorEconomy
CountrySaudi Arabia

Saudi Electricity Company (SEC) has signed an agreement with the Ministry of Finance to reclassify its net government liabilities.   The agreement comes as part of the recently approved sector-wide reforms, including financial, structural, and regulatory, orchestrated by a Ministerial Committee responsible for the restructuring of the kingdom’s electricity sector.   As per the terms of the financial agreement, SEC’s net government liabilities will be converted into a perpetual deeply subordinated equity-like financial instrument.

This conversion is considered non-dilutive and will therefore have no impact on the Company’s existing shareholders’ stakes.    Lauding the Saudi leadership for the reforms, SEC Chairman Dr Khaled bin Saleh Al Sultan said: "The agreement and the electricity sector’s recent financial, structural and regulatory reforms are truly significant achievements. This milestone is a culmination of the tremendous efforts of the ministerial ...read more...