Saudi Electricity secures $1.3b loan

14 Dec 2010

(MENAFN) Saudi Arabia’s Saudi Electricity Company (SEC), revealed in a statement that it has finalized a $1.3 billion murabaha Islamic financing with four local banks to finance projects inside the Kingdom, Reuters reported.

Due to economic and population growth, the 15-year financing loan will be utilized to finance projects with the goal of raising power generation capacity, transport and distribution in all areas of the kingdom in order to meet the rising demand for electricity, said the statement.

Saudi Arabia, the world’s biggest oil producer has seen an increase in population to over 27 million, and is seeing local demand for electricity rise at about 8 percent annually.

During 2009, state-controlled SEC said it used about 274,000 barrels per day (bpd) for electricity production, whereas half the electricity production in the Kingdom uses natural gas as a feedstock.

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