State utility provider Saudi Electricity Company (SEC) has signed $4bn of international syndicated revolving credit facilities with 15 international, regional and local banks.

According to a bourse filing on 25 August, the entities providing the financing are:

• Abu Dhabi Commercial Bank  (UAE)
• Bank of America Europe Dac (US)
• First Abu Dhabi Bank (UAE)
• HSBC Bank Middle East (UK)
• Industrial & Commercial Bank of China (Macau)
• JP Morgan Securities (US)
• Mizuho Bank (Japan)
• MUFG Bank (Dubai International Financial Centre (DIFC) branch, UAE) 
• Standard Chartered Bank (Hong Kong)
• SMBC Bank International (Japan)
• The Saudi Investment Bank (local)
• BNP Paribas (France)
• Emirates NBD Capital (UAE)
• Intesa Sanpaolo (Dubai branch, UAE)
• Natixis (DIFC branch, UAE)

The financing duration is three years, with a two-year extension option.

SEC said that the proceeds of the financing will be used for general corporate purposes.

The announcement comes only six months after SEC announced the completion of its offer of a dual-tranche sukuk (Islamic bond), which raised a total of $2.2bn, as part of the utility company’s international sukuk programme.

The completed offer consisted of a five-year sukuk tranche of $800m priced at a fixed profit rate of 4.942% a year and a 10-year sukuk tranche of $1.4bn priced at a fixed profit rate of 5.194% a year.

In February this year, SEC also said a "potential US dollar-denominated sukuk under the international sukuk programme" was planned, subject to market conditions.

It said then that the offer was "expected to be through a special purpose vehicle and by way of an offer to eligible investors in the Kingdom of Saudi Arabia and internationally”. 

SEC projects

MEED reported in July that SEC is engaged in bilateral discussions with the kingdom's principal buyer, Saudi Power Procurement Company (SPPC), to develop combined-cycle gas turbine (CCGT) electricity generation plants in Saudi Arabia.

The discussions revolve around five potential CCGT power generation plants, each with a capacity of 1,500MW-2,000MW, according to an industry source.

This development aligns with SEC's plan to develop approximately 30,000MW of gas-fired capacity within and outside Saudi Arabia, which MEED reported about on 13 June.

In 2022, SEC completed the divestment of its full interest in SPPC, which has enabled it to bid for contracts to develop and operate power generation plants, in addition to operating the kingdom's power transmission and distribution network.