SEC secures $3.5bn financing facilities

SEC secures $3.5bn financing facilities

Saudi Electricity Company (SEC), the Kingdom of Saudi Arabia’s premier electricity service provider, has announced signing an agreement to obtain a USD-denominated $3 billion International Syndicated Facility from 15 leading regional and international lenders.

Covering a five-year tenor, the unsecured Facility will be used to refinance an existing syndicated facility, initially raised in 2017 and set to mature in August of 2022, as well as fund the Company’s capital expenditure needs.

SEC had also announced obtaining a US$567.5 million Export Credit Agency (ECA) facility, covering a 14-year tenor, to finance its Saudi Arabia – Egypt electricity interconnection project.

The ECA facility agreement was signed with Standard Chartered Bank and Sumitomo Mitsui Banking Corporation, and subject to satisfaction of conditions precedent, will be guaranteed by the Swedish Export Credit Agency and funded by the Swedish Export Credit Corporation.

Commenting on singing these Facilities, Engineer Khaled Al-Gnoon, CEO of SEC, said: “SEC’s obtainment of this International Syndicated Facility as well as the ECA facility, both achieved at favourable terms and pricing, is testament to the Company’s substantial asset base, high quality credit, and ties with the Kingdom’s sovereign credit rating.

The increased interest from the regional and international banking community is also encouraging and speaks to Saudi