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RELATED ARTICLES: Saudi Electricity signs US $204.3m in deals | Shams solar project secures $600m financing | Saudi power generation to grow 49% through 2019
Saudi Electricity Company has secured a US$500 million (SAR 1.875 billion) loan agreement with Japan’s Bank of Tokyo-Mitsubishi to finance a number of new projects in Riyadh, the capital.
The state-backed power supplier, listed on the Tadawul, said it is keen to diversify its sources of credit as it puts in place further projects to meet the Kingdom’s swelling power demand, which the company estimates at growing between 7-8%
SEC is “opening the door to enter the global markets and support the company’s investments,” it said in a statement, published yesterday.
Last year, SEC executed SAR 90 billion worth of construction projects in an attempt to add 13,000 mega watts to the country’s power supply. It also announced a plan to share a grid with Egypt in a mutual pledge to meet local needs.It made a profit of SAR 2.2 billion for the year - 99% higher than 2009.
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The expansion to the provision of supply has seen an increasing collusion of private and public funds and expertise. In 2010, a deal with GDF Suez and two other contractors for the construction of a 1,750 MW power plant will be partly financed by banks.
SEC also signed a contract with Hyundai Heavy Industries and agreed a power supply deal with Emaar Middle East.
The deal comes as Japan reels from the effect of a 8.9 gauge earthquake and tsunami on its north-east coast on Friday, a double impact that left vulnerable a nuclear power station and likely to demand government execute emergency power supplies and financing from its private sector.
SEC shares rose on the Tadawul – the only Arab stock exchange open yesterday – 1.53% to SAR 13.25, recovering from a slump suffered at the end of February which saw them fall to SAR 12.4 on 2nd March, the lowest level since 7th April.
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