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Mon 16 May 2016 09:44 AM

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Saudi Electricity Co signs $900m loan for Shuqaiq plant

State utility says funds will finance $3.2bn power plant in Jizan

Saudi Electricity Co signs $900m loan for Shuqaiq plant

Saudi Electricity Co (SEC) signed a $900 million loan agreement with the Export-Import Bank of Korea (KEXIM) and other international lenders to help finance Shuqaiq power plant's construction, the utility said on Sunday.

The facility has a 13.25-year lifespan and is guaranteed by KEXIM. Bank of Tokyo-Mitsubishi, Deutsche Bank and Santander are among the lenders providing funding, the bourse statement said.

State-controlled SEC, the largest utility company in Saudi Arabia, has previously said that it expects the total cost of the project to be $3.2 billion.

It signed a contract in 2013 with South Korea's Hyundai Heavy Industries Co. Ltd. to build the 2,640 megawatt Shuqaiq power plant in southwestern Jizan province.

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