The Saudi Electricity Company signed Wednesday a SR15.2billion ($4 billion) joint financing deal provided by six local banks.
"This medium-term financing deal, which was signed at the company's headquarters in Riyadh, extends to seven years with two-years grace period," the company said in a statement, adding that the six local banks provided it with unsecured borrowing.
“This financing would contribute to paying some of the company’s financial obligations and enhance the reliability of its services,” said SEC Acting CEO Fahd al-Sudairy.
“It will also contribute to improving operational efficiency by injecting capital investments in line with the growing demand for electricity in all residential, industrial, governmental and commercial sectors.”
Sudairy explained that the loan represents a major boost to the 2019 financing plan.
It will extend the average maturity of the company's financing mix and enhance the firm's core expenses and funding for network connectivity, he said.
