Saudi electricity provider secures $567 mln for interconnection project with Egypt

Saudi electricity provider secures $567 mln for interconnection project with Egypt

Saudi Arabia’s electricity provider announced that it obtained a $567.5 million Export Credit Agency (ECA) facility to finance the Saudi–Egyptian electricity interconnection project.

Covering a 14-year tenor, the Saudi Press Agency reported that the agreement was signed with Standard Chartered Bank and Sumitomo Mitsui Banking Corporation, subject to conditions guaranteed by the Swedish Export Credit Agency and funded by the Swedish Export Credit Corporation.

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According to the SPA report, the Saudi Electricity Company also announced the signing of an agreement to obtain a USD-denominated $3 billion International Syndicated Facility from 15 regional and international lenders.

This is expected to cover a five-year tenor. The unsecured facility will be used to refinance an existing syndicated facility, initially raised in 2017 and set to mature this month.

“The increased interest from the regional and international banking community is encouraging and speaks to Saudi Arabia’s strong economic fundamentals, especially amid volatile market conditions,” SPA quoted SEC CEO Khaled al-Gnoon as saying.

“We look forward to leveraging the International Syndicated Facility to serve our CAPEX requirements, resulting in long-term growth for the business and our investors,” he added.

The 15-bank syndicate comprises Standard Chartered Bank, HSBC, Intesa