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Thu 30 Jun 2016 01:46 PM

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Saudi state utility secures $1.5bn funding from Chinese bank

Financing will be used to fund part of capital projects. says Saudi Electricity Company

Saudi state utility secures $1.5bn funding from Chinese bank

State-controlled utility Saudi Electricity Co (SEC) has obtained $1.5 billion in financing from Industrial and Commercial Bank of China, SEC said on Thursday.

The five-year "direct commercial funding agreement" was signed on June 29 and will be used to fund part of SEC's capital projects.

The funding was extended without SEC providing any guarantees, the company said without elaborating.

Last month, Saudi Electricity 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.

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.

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