Power Grid

On Thursday, December 12, 2024, the Saudi Electricity Company secured a $3.6 billion (13.5 billion riyals) joint international financing agreement with a group of global and regional banks. According to a statement seen by the Washington-based Specialized Energy Platform, the financing consortium includes major banks such as the Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, Telecommunications Bank, China Construction Bank, and KFW Bank IBEX. Other contributors include India's State Bank, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Boubyan Bank, Dubai Islamic Bank, and Saudi Investment Bank.

The financing agreement spans five years, with an option to extend for an additional two years. Notably, the deal was secured without any guarantees from the Saudi Electricity Company, reflecting the strong confidence the company holds in global financial markets.

In the stock market, the Saudi Electricity Company's shares saw a positive response, rising by 0.59% to 17.10 Saudi riyals ($4.59), gaining 0.1 riyals from the previous session. Despite a downturn in the broader market, with the Saudi stock index closing 49.86 points lower at 12,099.33 points, the electricity company’s stock performed well. The total trading value for Saudi Electricity shares amounted to more than 38.6 million riyals ($31.84 million), with around 2.26 million shares traded across 3,100 transactions.

Saudi Electricity’s acting CEO, Eng. Khalid Al-Ghamdi, emphasized that this financing deal is not only a financial arrangement but also a strategic milestone in achieving the company’s ambitious goals. He explained that the funds would help develop the country’s electrical infrastructure, connect renewable energy plants, and enhance energy storage capabilities, ultimately improving services for subscribers.

This aligns with Saudi Arabia’s Vision 2030, which focuses on creating a sustainable and diversified energy mix. Al-Ghamdi noted that the successful conclusion of this deal on competitive terms underscores the strong partnership between the company and leading banks and reflects the company’s robust credit standing and the financial market's trust in its future growth.