The Saudi Electricity Co (SEC) yesterday announced that it has signed loan agreements to the value of $1.75 billion with several international banks.
The grace period to repay the loans is up to five years. The company has not disclosed the interest rate. SEC said the loans were obtained to finance some of the company’s capital expenditure projects.
SEC is a state-controlled company and considered the largest utility company in the Kingdom.
The financial institutions which have loaned the funds are: Bank of Tokyo-Mitsubishi UFJ Limited, Sumitomo Mitsui Banking Corporation, Mizuho Bank Limited, HSBC, Standard Chartered Bank, NATIXIS, Citibank and First Abu Dhabi Bank.
SEC maintains a virtual monopoly on the generation, transmission and distribution of electric power in Saudi Arabia.
Seventy-four per cent of the company’s shares are owned by the Saudi government, while state-owned oil company Aramco owns seven per cent of them.