Saudi Electricity sees 2013 capex near $10 bln

SEC, the Gulf's largest utility, has a 452 billion riyal ($120.5 billion), 10-year investment plan
Saudi Electricity sees 2013 capex near $10 bln
By Reuters
Tue 09 Oct 2012 03:04 PM

Saudi Electricity Co (SEC) will have capital expenditure needs of nearly $10 billion next year, a senior executive said on Tuesday, and the state-controlled utility may tap debt markets to raise some of the funds.

SEC, the Gulf's largest utility, has a 452 billion riyal ($120.5 billion), 10-year investment plan as it speeds up delivery of its power projects to meet state infrastructure demands.

"Our capex requirement for 2013 is close to $10 billion, and the majority will be covered from internal sources," Manish Manchandya, a corporate finance executive at SEC, told reporters on the sidelines of a treasury conference.

Manchandya said a projected gap of about $1 billion to $2 billion would be covered by government funding and other means, including possibly debt markets.

SEC issued its debut dollar-denominated sukuk in March, raising $1.75 billion. The deal, which was heavily oversubscribed, was the kingdom's first U.S. currency bond since 2010.

Manchandya said SEC had no plans to tap debt markets this year, but stated: "In future, we plan to be an active player in capital markets both locally and internationally. The local market continues to be very liquid."

SEC plans to spend around $35 billion on high voltage power lines, with another $25 billion spent on distribution networks over the next 10 years.

SEC has an installed capacity of 54,000 megawatts and will add around 4,000 MW over the next 12 months to help meet rising demand, with another 8,000 MW to be added in 2014.

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