Saudi Electricity to build SR7.9 bn power plant

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Saudi Electricity Company is to sign a contract with GDF Suez and two other firms to build a 1,730 megawatt power plant, the state-owned provider revealed to the Tadawul today.

The project will cost SR7.9 billion and is set to be operational in two years, said the statement. The contract will be signed on 15th June and will be part-financed by banks.

Riyadh-based Saudi Electricity Company will buy the electricity for the next 20 years, it said.

Yesterday its stock closed up more than 7% to SR13 per share after starting trading at SR12.05. It has been one of the most volatile utilities stocks on the Tadawul, seeing a slump to SR10.5 on 25th May from a year-to-date high of SR12.6 almost exactly two months before.

Yesterday, the company’s executive director of treasury, Fahad Alsudairy, revealed that it may issue global sukuk bonds in next year after its sale of SR7 billion of Islamic notes last month.