Saudi Electricity Company has borrowed $568 million to fund the Saudi-Egypt electricity interconnection project.
According to a bourse filing, the fund is backed by Swedish Export Credit Corporation, Standard Chartered Bank, and Sumitomo Mitsui Banking Corp.
The two countries signed an agreement to establish an electrical interconnection in 2012 for the purpose of being the main axis in the Arab electrical linkage, which aims to create an infrastructure for electricity trade between Arab countries.
Last October, the two countries signed contracts for a $1.8 billion electricity interconnection project to ensure an exchange of 3,000 MW of electricity between both nations.
Saudi Electricity, set up in 1999, produces electricity through 45 power plants and owns transmission and distribution networks throughout the Kingdom.
The utility firm announced that it has also obtained a syndicated loan of $3 billion from a number of international banks.
As part of the five-year syndicated loan, the company will refinance an existing international syndicated facility. This will include, without limitation, capital expenditures.
The banks that lent the money include Standard Chartered Bank, HSBC Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, Industrial and Commercial Bank of China, and State Bank of India.
Following the announcement, shares of SEC closed Thursday’s trading session 0.58 higher percent at SR26.05.
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