Saudi Electricity company (SEC) has announced that it has signed a bilateral Murabaha facility agreement of SAR 2.4 billion ($639.7 million) with SAMBA Financial Group.
The Credit Facility will be used for general corporate purposes and capital expenditures, as the Company said in a statement.
Recently the Saudi power giant announced its plan to establish a power generation subsidiary to boost its expansion plan.
The kingdom’s sovereign wealth fund, the Public Investment Fund, owns a 74% stake in the Saudi Electricity.
Recently the Saudi Electricity Company also signed an International syndicated revolving credit facilities agreement of $ 2.15 billion (SAR 8.06 billion) with Many international banks including First Abu Dhabi Bank PJSC, Mizuho Bank, Ltd., MUFG Bank, Ltd., Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, HSBC Bank Middle East Limited, and the Hongkong and Shanghai Banking Corporation, JPMorgan Chase Bank, N.A. and Natixis.
Also Earlier this year, The Saudi Electricity Company signed an agreement with the Japanese firms Tokyo Electric Power Company, Nissan Motor Company and Tecaoca Coco Energy Solutions Company to implement an electric vehicle pilot project in Saudi Arabia.
The deal comes as Saudi Arabia looks to develop its auto industry in line with its goal of diversifying the economy beyond oil. Moreover, global emissions regulations are also motivating automakers to shift towards electric vehicles.
Saudi Electricity ranked fifth in Forbes Middle East’s Top 100 Listed Companies in the Arab world 2018, with total assets of $119 billion.