Saudi Electricity Co will use financing for construction of power plant in Rabigh
Co, the kingdom’s largest power producer, has received a $1.4bn loan
that is guaranteed by the Export-Import Bank of Korea and the Korean
Trade Insurance Corp.
loan will be paid in bi-annual installments after a three-year grace
period, the Riyadh-based utility said in a statement on the Saudi bourse
website on Saturday.
The loan will be used for the construction of a power
station in Rabigh on the Red Sea coast, the company said.
world’s largest economy needs an additional 2,000 megawatts of
electricity a year to meet demand the government forecasts will rise by 7
percent a year, according to Saudi Electricity data.
Holdings, Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking
Corp, and Mizuho Corporate Bank were among the banks that participated
in the financing, the utility said in the statement. The Export-Import
Bank of Korea also provided financing for the loan, the company said.
Saudi Arabia is supposed to be earning almost a Billion dollars a day. Why on earth does it need to take out a $1.4 Billion loan?
This does make one wonder if the allegations that just 20% of the oil receipts (all is US$) are actually received by the Saudis and 80% is "invested in US Bonds", which in other words means it is used to finance the US economy - and will probably never be returned, cos the US is broke and just cant afford to pay anyone back!