Saudi Electricity Gets $1.4 Billion Loan for Rabigh Plant

Saudi Electricity Co. (SECO), the kingdom’s largest power producer, received a $1.4 billion loan that is guaranteed by the Export-Import Bank of Korea and the Korean Trade Insurance Corp.

The 15-year loan will be paid in bi-annual installments after a three-year grace period, the Riyadh-based utility said in a statement on the Saudi bourse website today. The loan will be used for the construction of a power station in Rabigh on the Red Sea coast, the company said.

The Arab world’s largest economy needs an additional 2,000 megawatts of electricity a year to meet demand the government forecasts will rise by 7 percent a year, according to Saudi Electricity data.

HSBC Holdings Plc, Bank of Tokyo-Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corp., and Mizuho Corporate Bank were among the banks that participated in the financing, the utility said in the statement. The Export-Import Bank of Korea also provided financing for the loan, the company said.

To contact the reporter on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net

To contact the editor responsible for this story: Ben Holland at bholland1@bloomberg.net