2004 News Story

Electricity company brokers loan from Saudi banks

The Saudi Electricity Company (SEC) today brokered a 15-year loan facility from a consortium of six Saudi banks. The terms, denominated in Saudi Riyals, include the provision of an optional U.S. dollar tranche of up to $300 million. SEC will use the facility primarily to support its ongoing capital expenditure program.

SEC’s CEO Sulaiman bin Abdullah Al-Qadi said: "In seeking the loan we recognized that we were challenging the banking community to support the future development of our business in an evolving regulatory and sectoral environment, while also setting new precedents in terms of tenor and amount for loans of this type."
The six banks are: National Commercial Bank; Arab National Bank; SAMBA Financial Group; Saudi British Bank; Albank Alsaudi Alfransi; and Saudi Hollandi Bank. The financial advisor to SEC in respect of the financing is Gulf International Bank. The loan has been structured to reflect the strength of SEC's underlying cash flows relative to its ongoing capital expenditure requirements. In the process, careful attention has also been paid to ensuring that SEC will have flexibility to develop its business in line with the expected direction of regulatory planning for electrifying various sectors in the Kingdom. This is the first such facility sought by SEC since its incorporation on April 5, 2000.