SEC Seeks Expansion Cash

Saudi Electricity Company (SEC) is holding talks with local and international banks for loans worth $3-5bn, according to a Reuters report citing two unnamed sources. One source said that “the company is trying to mop up cash at a good price… They are exploring all options available in the debt market.”

SEC last year issued SR4.5bn ($1.2bn) of sukuk and $2.5bn of international bonds to help fund its expansion program. Two previous Sukuk raised $2bn in 2013 and $1.75bn in 2012 (MEES, 31 January 2014).

Like all regional state-owned generators, SEC’s available cash for capacity expansion is limited by a requirement to sell electricity at heavily subsidized prices. Hence, SEC also received a government loan in March 2014 for SR49.4bn ($13.2bn), to be released to SEC by the Ministry of Finance over five years and subsequently repayable in installments over 25 years.


DON'T HAVE AN ACCOUNT?


NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?

By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.

UPGRADE