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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 firstname.lastname@example.org
To contact the editor responsible for this story: Ben Holland at email@example.com