SEC to get $4b loan from Saudi government

27 Apr 2010

(MENAFN) The Chief Executive Officer at Saudi Electricity Co. (SEC) said that the company will receive a $4 billion loan from its main shareholder, the Saudi government, over the next two years, SPA reported.

According to the CEO, the bulk of the loan will finance the construction of a new power plant in Rabigh, where the giant King Abdullah Economic City is under construction.

He said that the utility is planning to sell Islamic bonds, or Sukuk, next month to raise $1.87 billion to finance its expansion plans, adding that the government?s soft loan to the Arab world?s biggest utility matures over 25 years.

Saudi Arabia expects SEC to invest $80 billion over the next 10 years to add 20,000 megawatts of power generation capacity, as the cash-strapped firm has been struggling to meet pent up power demand – which grew by about 8 percent in 2009.

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