The Saudi Electricity Company (SEC) has recently marked a significant milestone by finalizing a substantial $3 billion (SR11.25 billion) international syndicated facility agreement with four prominent regional banks. This landmark financing agreement, which holds a five-year tenure and requires no guarantees from the SEC, was officially signed during the prestigious global economic event, the Future Investment Initiative, in Riyadh.
The participating banks in this pivotal initiative include Dubai Islamic Bank PJSC, Kuwait Finance House, Mashreq Bank PSC, and Saudi National Bank, collectively contributing to the realization of the SEC’s ambitious investment strategy. Speaking on this groundbreaking development, Khaled Al Gnoon, CEO of SEC, underscored the strategic significance of this financial infusion, emphasizing its role in the implementation of the company’s expansive investment plans within the electricity sector. This substantial capital injection, amounting to approximately SR500 billion, is geared towards enhancing the provision of exceptional electricity services and amplifying the growth of the company’s regulated asset base, thus solidifying its financial position and propelling revenue growth prospects.
Al Gnoon elaborated on the key areas of focus for these investments, emphasizing the company’s commitment to building smart grids, integrating renewable energy projects, and improving grid reliability. These strategic initiatives are poised to optimize electricity generation efficiency and align seamlessly with the overarching objectives outlined in Vision 2030, Saudi Arabia’s ambitious national agenda.
Highlighting the broader environmental and societal benefits inherent in these initiatives, Al Gnoon emphasized the company’s dedication to environmentally friendly and sustainable ventures. Moreover, he emphasized the diversification of the company’s portfolio, encompassing energy production advancements, progress in the liquid displacement program, and the exploration of new business segments such as fiber optics telecom and ICT services, energy solutions, and the establishment of critical infrastructure for electric vehicles.
Underpinned by a robust financial profile and a well-structured capital framework, bolstered further by favorable regulatory and financial reforms in the electricity sector, the SEC is strategically positioned to effectively fund and execute its future growth plans, thereby enhancing shareholder returns and contributing significantly to the sustainable development of Saudi Arabia.