Saudi signs $900m loan agreement for a power plant

Saudi Electricity Company (SEC) yesterday announced the signing of a loan agreement worth $900 million to finance its project to build Al-Shuqaiq Steam Power Plant, the company said in a statement.

The loan is guaranteed by the Export-Import Bank of Korea (KEXIM) and other international banks including Tokyo-Mitsubishi Bank, Deutsche Bank and Standard Chartered Bank.

According to the statement, the funding period will last for approximately 13 and a quarter years.

The Saudi government owns 74 per cent of the SEC’s shares, while seven per cent of the shares are owned by Saudi Aramco.

Saudi Arabia, the largest oil exporter in the world has suffers greatly following the decline in crude oil.