The Saudi Power Company announced that it has entered into a Shariah-compliant Murabaha financing facility with a group of local banks to refinance existing debt.
The three-year scheme, with an option for extension subject to agreed terms, was signed this week, the Saudi power company said in a filing to Saudi Stock Exchange Tadawul.
These local banks are Saudi National Bank, Al Rajhi Banking and Investment Corporation, Saudi Awal Bank, Saudi Fransi Bank, Arab National Bank, Bank of Riyadh, and Qatar International Islamic Bank.
The SEC said no guarantees were provided for the financing.
This comes on the heels of the SEC last month signing an Energy Conversion Agreement (ECA) with the Saudi Electricity Procurement Company (principal purchaser) to purchase energy produced from the Rabigh 1 expansion power plant for R5.33 billion ($1.4 billion).
The Rabigh 1 expansion project in Saudi Arabia’s Western Province is a large-scale combined cycle gas turbine (CCGT) power plant with a total production capacity of 1,179MW.
The SEC had signed a similar agreement worth $1 billion with the Italian Export Credit Agency (SACE) in December last year, aimed at supporting the development and expansion of power projects across the kingdom.
The consortium of international financial institutions includes HSBC, UBS, Citibank, ING Bank, Mashreq, Santander, BNP Paribas, BofA Securities and BBVA, underscoring the strong global confidence in the SEC’s financial strength and strategic direction.
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